First-time buyers forced to pay record breaking deposits
Recent Halifax data has tracked the average national deposit for a first-time buyer at an unassailable £33,127. Staggeringly, this is a colossal increase of 71% when compared with the 2008 deposit figures of £19,364.
In part, this is a product of steadily rising house prices. According to the recent figures, house prices have increased by 21% in the past ten years. In 2008, an average house would cost the nation £172,659; it now stands at £208,741.
Despite these clear barriers to entry, the figures have not deterred first-time buyers as they now make up 51% of the market share according to the statistics taken from the first half of 2018.
The number of first-time buyers in the opening half of 2018 topped 145,000; this is in stark contrast to the lowest figures of 72,700 in 2009.
These figures will be enthusiastic reading to those in the property sector, with figures only 8% lower than the number of first-time buyers in the boom period of 2006.
Russell Galley, managing director at Halifax, said: “First-time buyers are having to dig deeper than ever to get onto the property ladder. With the average price now over £200,000 and deposits at £33,000 it’s not surprising that the average age of a first-time buyer has crept up to 31.
“Despite these increases, and the concern many young people feel about home ownership, the number of first-time buyers continues to grow and is nearly back to the peak seen of 2006.
“Government measures, such as Help to Buy, and record low mortgage rates continue to make buying more financially attractive than renting, with savings of £900 a year.”
Halifax statistics will be difficult reading for any first-time buyer attempting to buy in the London area with prices increasing by 48% in the past decade and average house prices soaring to an astronomical £419,608.
Although record numbers of first-time buyers have successfully made the leap onto the property ladder, this success is not necessarily transferring to 18-34-year olds. This age range find securing a mortgage and buying a house to be overly difficult. Pessimistically, one in five believe they will be renting forever.
Whilst many can only see an unstable future of renting a home, the record figures must be considered positive for the house buying industry.
Have you seen more first-time buyers successfully purchasing property? Are the recent rising house prices going to alienate a generation of first-time buyers who can no longer afford the deposit?