First time homebuyers increased by 12%; numbers reach five-year high

A recent study also reveals that first time buyers this year are older and that they put bigger deposits.

11:32 30 December 2012

If recent gathered data are any indication, it seems that the real estate market sector is slowly coping up. 2012 marks the biggest number of first time homebuyers since 2007. According to Halifax, there were 216,000 buyers who took their first step on property ladder this year. However, although this is a five-year high, it’s just almost half the number recorded in 2006 which was 402,800 buyers.

Halifax concluded that more people bought properties this year partly because of improved mortgage affordability.

 

Mortgage payments take 27 percent of new buyers disposable income which is comfortably below the long-term average of 34 percent. It was also revealed that the price paid by first-time buyer is considered affordable for people who are on average earnings in 39 percent of local authority districts in the UK.

 

Martin Ellis, housing economist at Halifax, said: "The number of first-time buyers has risen to a five-year high, boosted by the improvement in affordability resulting from the reductions in both house prices and mortgage rates in recent years.

 

"Conditions for potential first-time buyers, however, remain very difficult with problems raising the necessary deposit and concerns over the economic climate continuing to prevent many from entering the market.