First time buyers make up the biggest part of the property market in the UK for first time in over 20 years. First time buyers reached 372,000 in 2018, accounting for the majority of home purchases for the first time since 1995. This is a rise of 2% in the last 12 months, continuing an upward trend over the last seven years. Although growth in 2018 was at a slower rate than 2017 when it was 7.6% and 2016 when it was 9%, first time buyers overall have increased by 92% from an all-time low of 192,300 in 2008.
First time buyers now account for just over 50% of all house purchases with a mortgage, an increase from 38% a decade ago. The average price paid for a typical first home has gone up by 39%, from £153,030 in 2008, to £212,473 in 2018, and the average deposit has increased by 57% from £21,133 to £33,252 over the same period. Meanwhile, the average deposit put down by a first time buyer was 14% of the purchase price in 2008 at £21,366, jumping to 20% in 2009, the highest over the last decade. In 2018 the average deposit has come down to 15% of the purchase price, although the average property price has continued to increase.
Terraced houses, closely followed by semi-detached properties have continued to be the first-time buyer’s home of choice over the past decade, making up 67% of mortgages for first homes in 2018. New buyers coming on to the Wolverhampton property market are vital for the overall wellbeing of the housing market, and the continued growth in first time buyers shows a healthy movement in this area, despite a shortage of homes and the ongoing challenge of raising a deposit.
Last year was the first year that first time buyers accounted for the majority of the market since 1995, which shows that the factors reducing some of the associated costs, such as continued low mortgage rates and stamp duty, are supporting the increasing number of people taking their first step on to the property ladder. So what are you waiting for first time buyers of Wolverhampton if you are unsure about raising mortgage finance for your first home because you are self employed or have credit issues contact Paul at Apple finance on 01902 213201 for free mortgage advice.