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FTBs unaffected by Brexit

Jessica Nangle

August 16, 2019

housing

The number of first-time buyers (FTBs) reached 170,080, a 3% year-on-year increase and the highest figure since 2007 according to Yorkshire Building Society.

FTBs are reportedly now representing over half (52%) of all UK homes bought with a mortgage, which is the highest market share since 1995.

Nitesh Patel, strategic economist at Yorkshire Building Society, said: “Whilst the current economic and political landscape is less than certain, these figures show an increasing confidence to get on to the house ladder with first-time buyer numbers close to their pre-crash levels.

“This is partly to do with a strong jobs market, with record numbers in full-time employment and resurgence in real earnings growth.

“Another factor is a highly competitive mortgage market is helping to keep borrowing costs at very low levels.”

The average price of a typical FTB home has grown 41% since 2007 to reach £236,089 in the first half of 2019.

The Yorkshire also suggests that FTBs are also taking longer mortgage terms, with longer term mortgages of between 25 and 35 years now accounting for 62% of mortgages.

Patel continued: “Schemes such as help to buy and stamp duty relief have provided support to this market and inter-generational financial assistance has also enabled more people to purchase their first home.

“The fact this demographic now makes up more than half the total mortgage market share, compared to 2007 when it was just over one in three, is testament to the support that is now available.”


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