The number of first time buyers has risen to its highest level in the UK since the beginning of the recession in 2007. According to Halifax the number of first time buyers topped 326,500 in 2014, an increase of 22% compared to the previous year. Experts say that this increase has been the result of an improving economy and governmental polices such as the Help to Buy Scheme. Good signs if you’re looking to move house in 2015.
House Price Affordability for First time Buyers
Although house prices have continued to rise, first time buyers are finding house purchases more affordable. They are benefiting from low mortgage rates and reduced deposit requirements, Halifax say average deposits have reduced by 7% last year.
Whilst house prices have on average increased by 9% first time buyers now spend 31% of their disposable income on mortgages, down from 47% in 2007. Overall mortgage affordability has improved since the recession and is helping first-time buyers to get on the ladder. More people entering the market means more movement everywhere, more home moves and more house removals. Good for us all.
It is an interesting to see that the average age of first time buyers has risen from 28 in 2009 to 30 in 2014, with the average being 32 in London. The average house price paid by first-time buyers rose 9% to nearly £172 000 and about 80% of those using the Help to Buy scheme are first time buyers. This obviously means that people are either renting or living with their parents for longer. Hopefully we will see a reversal in this trend allowing more people to move into their own homes earlier.
The data produced by Halifax has shown that the growth in the number of first-time buyers has steadily increased for the last 3 years. All of this points to growing confidence in the current housing market and the overall economy, first time buyers are essential for a healthy and properly functioning housing market.
This is all good news if you’re looking to move home in 2015. With more potential house buyers entering the market, there will be more house moves all round. We are here to help with any aspect of your house removal if you do plan to move house in 2015.
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