Average FTB age set to fall
Since the beginning of the year, myhomemove through its subsidiary, Premier Property Lawyers, has helped over 3,700 first-time buyers to enter the property market.
Based on this data, the average age of a first-time buyer in the UK is 33, while the average purchase price for a first-time buyer property is £180,000.
Doug Crawford, chief executive officer of myhomemove, said: “Most mortgage lenders currently require borrowers to have a 20% deposit; the equivalent of £36,000 on a property costing £180,000.
“This is a vast amount of money which, according to industry research, will take an average of eight years dedicated saving to achieve, with relatives often being called upon to help top up the balance.
“With the government’s second phase of its Help-to-Buy scheme launching this week, we predict that the average age of a first-time buyer will drop by up to six years, to 27, as saving for a 5% deposit could take as little as two years.
“And who knows, the ‘Bank of Mum and Dad’ may be able to take a break, as the government steps in to guarantee the mortgages.”
Unlike its counterpart scheme for new build properties the Help-to-Buy initiative requires little additional work on the part of the home buyer or conveyancer; meaning that once the government’s release date for guarantees has passed (2 January 2014), there is no reason a property bought with a Help-to-Buy mortgage should take any longer to complete.