While there is optimism surrounding the property market for 2020, it is essential potential buyers are realistic with expectations. It is pleasing to see more people take an interest in the housing market, and the industry talk is that across the country, estate agents have registered more house-hunters.
However, it is still expensive to buy property, and the costs for first-time buyers are rising. While first-time buyers shouldn’t be scared or put off the idea of buying homes because of these rising costs, it is sensible to know what challenges you will face when purchasing a home.
First-time buyers need to find a more substantial deposit when buying a home
The size of the deposit required is a crucial factor when purchasing a home, and the average deposit needed for a first-time buyer increased in 2019. In 2018, the average deposit was £43,155, and in 2019, the average deposit was £46,187. This represents a rise of 7%.
There was also an increase in the average price paid by a first-time buyer in the United Kingdom. In 2018, the average amount paid was £213,203, but in 2019, the figure rose to £231,455. This was an increase of £18,252; which represents a rise of 9%.
These figures were taken from data published by Halifax. Russell Galley is the Managing Director of Halifax, and he said; “Whilst price growth in the overall housing market has been modest in recent years, the level of inflation facing first-time buyers is greater, which compounds the challenge in raising bigger deposits. However, given their importance to the market as a whole, it’s reassuring that the overall number of new buyers getting on the ladder remains stable.”
There is a growing number of first-time buyers
While the rising costs associated with buying a property is concerning, it is positive to see the number of first-time buyers remaining stable. In 2018, there were 353,130 first-time buyers, and in 2019, this figure rose by 1% to 356,767. In the broader scheme of the property market, first-time buyers continue to make up more than half of the property transactions.
With the March Budget looming, many people are waiting to see if any moves will be made to assist first-time buyers further.
“There has been a lot of support for first-time buyers, with Help to Buy schemes and family support mortgages being examples of help offered to these buyers”, said Thomas Morris Biggleswade Branch Manager Ryan Coyne. “However, more needs to be done. First-time buyers represent the largest group of buyers in the market, and supporting them benefits everyone. If you are a first-time buyer looking for assistance, arrange a visit, and we’ll be happy to talk you through the process.”
Every step of the property buying and selling process is challenging. If you are buying a home, we are here to help. If you plan on selling your home, book a valuation at a time that is of suitable to you or alternatively, you can phone our Biggleswade branch, managed by Ryan Coyne by calling us on 01767 310111.