Half of all homes bought in 2018 went to first-time buyers, with the highest number of Brits getting on the housing ladder since 2006, study suggests
- 2018 saw the highest number of Brits getting on the housing ladder since 2006
- Research suggest that 367,038 first-time buyers used mortgages in 2018
- Yorkshire Building Society found it was nearly double the figure in 2008
Half of all homes bought with a mortgage last year went to first-time buyers, analysis suggests.
Figures indicate that 2018 saw the highest number of Britons getting on the housing ladder since 2006.
Research from the Yorkshire Building Society found that across the UK some 367,038 first-time buyers used mortgages in 2018.
That was nearly double the figure in 2008 – 193,300 – and stood just 9 per cent lower than the pre-crisis peak of 402,800 in 2006.
Yorkshire Building Society said first-time buyers now represent 50 per cent of all homes bought with a mortgage – the highest proportion since 1995.
Research from the Yorkshire Building Society found that across the UK some 367,038 first-time buyers used mortgages in 2018
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The lender based its findings on market-wide first-time buyer data from trade association UK Finance, using figures up to October. It then estimated figures for November and December based on previous buyer patterns.
The researchers said the figures suggest government initiatives aimed at first-time buyers – such as Help to Buy Isas and stamp duty relief – have had a positive impact.
Yorkshire Building Society economist Nitesh Patel said: ‘Property prices have grown at a faster rate than wages over the past decade, which has created difficulties for first-time buyers.
‘Various factors have helped to alleviate this challenging environment, although the market is still pretty tough for those wanting to become homeowners.’
The first time buyers market has bounced back despite a challenging year
He added: ‘Over the past three or four years, we’ve also seen more mortgage lenders offering 95 per cent loan-to-value mortgages, as well as strong competition driving mortgage rates down.’
He stressed that getting on the housing ladder ‘is still not an easy step for many young people, as demonstrated by the increasing numbers who have received help from the Bank of Mum and Dad’.
However, he added: ‘Despite these challenges, the first-time buyer market has bounced back following the financial crisis to outperform other sectors, such as the home-moving and buy-to-let markets.
‘Buying your first home remains tough for many but it’s encouraging to see first-time buyer levels at a 12-year high and climbing.’
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