Number of first-time buyers hits all-time low

News provided by Decision Homebuyers, a leading UK property company providing a quick and simple solution for selling your home, no matter what the condition. Decision Homebuyers carries out daily surveys of the national media to provide up-to-date news and commentary on the UK property market.

[UKPRwire, Fri Dec 28 2007] A new report released by Halifax shows that the number of first-time buyers (FTBs) of property in the UK has sunk to its lowest point in almost thirty years as a result of rising house prices. In its annual First Time Buyer Review, Halifax said that the number of FTBs in 2007 was 300,000, some 15,000 fewer than 2006 and substantially down from 532,000 five years ago.

The report showed that the average property price was out of the financial reach of the typical FTB in 96% of all UK towns (in South West England, East Anglia, East Midlands, Yorkshire & the Humber, and Northern Ireland). The price increases were led by Northern Ireland, London, and South East England, the latter being the most difficult region for FTBs, with seven out of the ten least affordable towns located there. Henley-on-Thames is the UK’s least affordable town, with an average property price of £642,672, 13.1 times the average income of a FTB household.

The average house price paid by FTBs increased by 15% over the last twelve months from £151,720 to £175,093, and by an enormous 82% over the last five years.

“The rise in property values right across the UK continues to make it ever harder for those who are struggling to gain a foothold on the property ladder,” said Lawrence Smith of Decision Homebuyers.

The review also found a rise in the average deposit paid by new buyers, from £28,169 to £34,381, which was 20% above average full-time earnings. FTBs accounted for 29% of all new mortgages in the UK in 2007, a drop from the 34% share in 2002.

First-time buyers are now more likely to be in their 30s rather than their 20s, and for the first time flats are now the most common purchase for FTBs rather than a terraced house. Proportionately more home purchases by FTBs are in cities rather than towns, indicating a preference for convenience over size.

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