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First-time Buyers

Drop in number of first-time buyers

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
03/07/2015

Almost half of all houses sold so far in 2015 were to first-time buyers, but the overall number of people getting onto the ladder has fallen.

Data from Halifax showed 47% of all mortgaged house purchases were by people making their first step onto the property ladder. This figure is significantly higher than the 38% recorded in 2011.

In total there were 139,500 first-time buyers in the first six months of the year, down 10,000 on the same point last year. This is the first annual drop since 2011.

In addition, the average deposit required to purchase a home has risen 6% in the last 12 months to reach £29,894.

The average deposit is now £13,494 (82%) higher than in 2007.

This increase has been offset by changes to the stamp duty rules last December. Today the average new buyer saves £716 in stamp duty, rising to £3,154 in the capital.

The average price paid by first-time buyers was found to be highest in Greater London (£342,313). This was more than £100,000 higher than the next most expensive region, the South East (£225,383).

Halifax said Northern Ireland was the least expensive area of the UK for a new buyer, with an average price paid of £104,240.

Craig McKinlay, mortgages director at Halifax, said activity was expected to increase later in the year.

“There was a modest decline in the number of first-time buyers in the first half of the year following the substantial increases recorded in 2013 and 2014. This fall has been in line with the general softening in market activity,” he said.

“However, there are now signs of a pick-up in mortgage activity as the economy continues to recover and mortgage interest rates remain at very low levels. These factors could boost the number of first-time buyers during the second half of the year.”