For the first time in 23 years, first-time buyers account for the majority of UK house purchases with a mortgage – according to the latest Halifax First-Time Buyer Review.
Published on 23 February 2019, the review reported key property market insights for the UK as a whole, while providing further insight into the £36,611 average deposit for first-time buyers in East Anglia. These figures were derived from research conducted by UK Finance, as well as Halifax’s own house price database and the earnings factors from the Office for National Statistics (ONS).
Russell Galley, Managing Director of Halifax, said of the findings: “The continued growth in first-time buyers shows healthy movement in this important area, despite a shortage of homes and the ongoing challenge of raising a deposit.”
The news comes after Halifax’s previous review, published in August 2018, reported that due to the elevation of property values and deposits since 2008, first-time buyers were having to ‘dig deep’ to get themselves onto the property ladder, and were becoming increasingly reliant on family assistance.
Key findings from the latest Halifax review
In 2018 over 50% of all home purchases using a mortgage were made by first-time buyers getting a foot on the property ladder. It’s the first time since 1995 that this has been the case, after first-time buyers made up 49% of home purchases in 2017, and only 37% in 2010.
First-time buyers in the UK are now having to put down an average deposit of £32,841, a 0.8% decrease on last year’s £33,127 average deposit. However, the average first-time buyer deposit today is substantially higher than in 2008, when it stood at £21,133. The average price paid for a typical first home has also increased by 39% in the past ten years, rising from £153,030 to £212,473. Perhaps most significantly, the review highlighted a 2% increase in the number of first-time buyers; rising to 370,000 for 2018.
What is happening in East Anglia?
East Anglia was among the regions where deposits grew the fastest over the last six months, alongside the East and West Midlands and the South West. Halifax reported that the average deposits for East Anglia in cash are £36,611, or an average of 17% of the purchase price of a property.
According to the review, the average house price for first-time buyers in East Anglia has risen to £210,874 for 2018, marking a mere 0.1% rise on the average price of £210,639 as reported in Halifax’s review in August 2018. In light of the findings, Halifax’s Managing Director Russell Galley added: “New buyers coming on to the ladder are vital for the overall wellbeing of the UK housing market.”
A helping hand for first-time buyers
As a first-time buyer, applying for a mortgage can be an exciting – yet daunting – process. At The Mortgage Centres, we want to make taking your first steps on the ladder as straightforward and painless as possible, so why not speak to one of our mortgage advisers in East Anglia to get the ball rolling? We also help potential homeowners with applying for the Shared Ownership scheme, so please contact one of our branches for more information.