GOVERNMENT SCHEMES
THE GREAT FIRST TIME BUYER COMEBACK The number of first time buyers is estimated to have gone past the 400,000 mark for the first time since before the "Great Financial Crisis" of 2008, according to the latest analysis from Yorkshire Building Society. Debbie Clark looks at what has changed and how you can join the resurgence Latest estimates suggest the number of first time buyer transactions reached 408,379 in 2021; a whopping 35% increase on 2020 (303,000). Furthermore, first time buyers now represent 50% of all house purchases with a mortgage, up from just 36% back in 2007. New buyers have clearly not been deterred by the price increase of a typical first time buyer home; 9% in the year to October, with the average price up from £204,230 to £222,997. Rewind 15 years to see transactions at this latest level, reaching 400,900 in 2006; around double the numbers immediately after the crisis, where they hovered around 200,000 between 2008 and 2012. The previous first time buyer peak was 20 years ago in 2002, when 531,800 took their first step on to the housing ladder. Nitesh Patel, Strategic Economist at Yorkshire Building Society, said, “The performance of the first time buyer market in 2021 has been extraordinary, particularly against the backdrop of uncertainties caused by the lockdown in the early months of the year.” It is believed that falling unemployment, low borrowing costs and an increased number of low deposit mortgage deals are
key drivers of current demand. The ability of first time buyers to increase the size of their deposits was also helped by the Stamp Duty holiday, particularly benefiting new buyers in the high value areas such as London and the South East. First time buyers do, of course, continue to benefit from Stamp Duty relief on the first £300,000 of the purchase price. Deposit sizes for some were also increased due to a drop in household expenditure during national lockdowns, with the proportion of households’ disposable income saved nationally rising from 7% in 2019 to 27% in the second quarter of 2020; the highest by some margin since records began in 1963! According to the English Housing Survey (EHS), over 60% of first time buyers are in the top 40% of the income distribution, where survey data from the Bank of England shows that the improvement in household finances as a result of Covid-19 restrictions has been greatest. Whatever level of savings you have managed to accumulate, now is a great time to look seriously at how you can best use them to secure your own home. Let’s make 2022 another record breaker!
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EALING
Union Square Union Square in well-located Perivale, Ealing, offers modern and stylish one, two and three bedroom apartments. The layouts have been carefully considered to ensure residents can make the most of their spacious and contemporary interiors. Kitchens are designed to a high specification, with integrated Bosch appliances. The homes at Union Square promise to offer residents the ideal balance of suburban peace alongside easy accessibility to the wonderful offerings of the city. Parking is available to purchase at an additional cost. networkhomessales.co.uk/find-your-newhome/union-square-perivale 020 8579 5050 *Based on a 25% share of the full market value of £332,500
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