Nearly 50% of mortgage-financed house buys from FTB’s
New research from the Halifax has indicated that first-time buyers account for almost half of mortgage-financed house purchases.
According to the data, 47% of these purchases are completed by buyers taking their first steps onto the housing ladder, up from 38% in 2011. In addition, the Halifax First-Time Buyer Review indicates that there were 139,500 first-time buyers in the first half of 2015.[1]
Comparison
In comparison to the same period in 2014, purchases are down by around 7%. This represents the first decline since 2011, but with the exception of 2014, this was still the highest total for the first half of the year since 2007.[1]
The average first-time buyer deposit in May 2015 was found to be £29,842, 6% greater than in May 2014. This rise can be attributed to the increase in property prices over the last twelve months. Data from the report shows that the average first-time buyer deposit is now £13,494, which is 82% higher than the £16,400 in 2007.[1]
Changes to the stamp duty system have already saved the average first-time buyer £716, according to the review. This means that the tax bill for the average purchaser buying a home at £178,370 now pays £1,067. In London, the reductions are far greater, with the average first-time buyer paying £7,115 in tax, in comparison to £10,269 pre-changes.[1]
Nearly 50% of mortgage-financed house buys from FTB’s
Pick-up
Craig Mckinlay, Mortgages Director at Halifax, stated that, ‘there was a modest decline in the number of first-time buyers in the first half of the year following the substantial increases recorded in 2013 and 2014. This fall has been in line wit the general softening in market activity.’
‘However, there are now signs of a pick-up in mortgage activity as the economy continues to recover and mortgage interest rates remain at very low levels,’ he continued. ‘These factors could boost the number of first-time buyers during the second half of the year.’[1]
[1] http://www.propertyreporter.co.uk/property/how-many-new-first-time-buyers-so-far-in-2015.html