First-time buyers rise to highest level since 2007

First-time buyers rise to highest level since 2007

UK lender the Halifax has said the number of first-time buyers rose to its highest level in seven years in 2014 to some 326,500. This is a leap of 22% over the previous year, and is being attributed to cheap mortgage rates and government schemes such as Help to Buy which only requires a small deposit compared to a traditional first-time buyer mortgage.

Mortgages director Craig McKinlay commented: “Improving economic conditions and rising employment levels have boosted confidence among those thinking about getting on to the housing ladder for the first time.”

Even though house prices rose significantly in 2014, they were still more affordable because mortgage rates fell and the average deposit required also dropped by 7%. This saw first-time buyers needing a down-payment of £29,218 in 2014 - compared to £31,582 in 2013. And, compared with spending 50% of their disposable income on a mortgage in 2007 before the recession hit, last year a first-time buyer typically spent some 32%.

However, prices themselves went up with the average first-time buyer paying £171,870 in 2014, some 9% more than in the previous year.

If you’re thinking of buying your first home, contact Sharon Sangha at Lawson-West on 0116 212 1000 for a conveyancing quote.

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