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

FROM £83,125*

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!

key drivers of current demand. The ability of

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 speci cation, 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/ nd-your-newhome/union-square-perivale 020 8579 5050

*Based on a 25% share of the full market value of £332,500

CLAPHAM JUNCTION

St John’s Way, SW11

FROM £130,000*

A collection of one, two and three bedroom apartments, St John’s Way occupies a prime setting in the heart of buzzing SW11. Each shared ownership property features bright, spacious open-plan layouts, coupled with highquality interiors and private outdoor space in the form of a balcony or terrace. Residents will also have access to a central courtyard and beautifully landscaped grounds, a new community hub, children’s play area and a 24-hour concierge service. Less than ve minutes’ walk from the development is Clapham Junction station, giving commuters convenient travel into London Waterloo, Victoria and beyond. The award-winning green spaces of Clapham Common and Wandsworth Common are both within walking distance.

peabodysales.co.uk/developments/st-johns-way 020 7021 4842

*Based on a 25% share of the full market value of £520,000

HARROW

The Elms

FROM £86,875*

The Elms is a collection of one and two bedroom apartments, all with wellproportioned living areas and equipped with contemporary fully tted kitchens, as well as modern and stylish bathrooms. Conveniently located just a short walk from the shopping centres, cafes and restaurants of Harrow on the Hill, the development is also within walking distance of both Harrow-on-the-Hill and Harrow & Wealdstone stations, offering quick connections into London Euston, Baker Street or Marylebone stations. Eligibility for this development is open London-wide to those who meet the shared ownership criteria, with priority given to applicants who live or work in the London Borough of Harrow.

sharetobuy.com/properties/156106

*Based on a 25% share of the full market value of £347,500

SOUTH WEST LONDON

The Switch

FROM £100,000*

Catalyst is currently marketing 181 one to three bedroom shared ownership apartments at The Switch as part of a landmark joint venture with Galliard Homes. Nearly every home enjoys private outdoor space and all residents have access to communal podium gardens. Kitchens are tted with gloss grey designer units, stone worktops and integrated appliances, while bathrooms feature oak-veneered vanity units, mirrored cabinetry, and tiled oors and walls. Selected two and three bedroom apartments are set across two oors, providing residents with a signi cant amount of living space. The Switch includes 633 homes alongside new retail and leisure space set around a new 9,000-seat stadium for AFC Wimbledon. Equidistant between Earls eld and Wimbledon, residents have green spaces, cultural and entertainment opportunities and great transport connections all on the doorstep, helping to establish this as an exciting new south west London district.

catalyst.homes/development/the-switch 020 8131 9746

*Based on a 25% share of the full market value of £400,000 CASE STUDY

First time buyers Ben, 32, and John, 34, have purchased a three bedroom home in Silsoe, Bedfordshire; a move made possible thanks to the Government’s Help to Buy initiative. Ben, an electronics engineer, and John, a Passenger Services Executive for Singapore Airlines, were living with Ben’s parents in the neighbouring village of Flitton in order to save a deposit.

After 20 months of saving, they have purchased a three bedroom Buckland home at Hay eld Place. The impressive 14-acre development is designed to re ect architectural styles from the sought-after historic village, weaving in local materials and detailing.

Ben says, “John’s parents relocated from St Albans in Hertfordshire to Hay eld Place a few months ago, to move closer to us. We had been saving for a deposit for a long time and were getting frustrated that there was nothing suitable for us to buy locally. When helping them to move in, we discovered there was a Buckland home available that was eligible for Help to Buy. We reserved the day after we viewed the plans and had a site tour, as it was our perfect rst home and we didn’t want to risk missing out.”

The delighted couple were able to move in only eight weeks after signing the registration form. Ben continues, “While using Help to Buy adds an extra dimension to the purchasing process, it has enabled us to buy a beautiful, brand new three bedroom Hay eld home in a very peaceful setting. I grew up in this area and we know it like the back of our hands. The vast English Heritage Wrest Park Estate is spectacular for dog walks and picnics, and now it’s only a few minutes’ walk from our front door.”

New public footpaths, a balancing pond, a biodiversity corridor that runs across the site, and a new section of bridleway and cycle route are all being created to connect Hay eld Place into the local Bedfordshire footpath network. The nearby towns of Milton Keynes, Luton and Bedford offer a wealth of shopping, restaurants, entertainment and sporting facilities. Luton airport is 12 miles away, and Flitwick railway station is four miles away, making it an ideal location for those wishing to travel for pleasure or commute.

hay eldhomes.co.uk/development/hay eld-place

CASE STUDY

Kirsty, a 29-year-old Client Relationship Manager, has recently secured her rst home at Notting Hill Genesis’ Peckham Place, with the support of London Help to Buy. She says, “I’ve always loved Peckham. It has so much character, edge, culture, and history… it’s de nitely a hub for people in my age group.”

Discussing her previous living arrangements, Kirsty explains, “When the pandemic hit, I moved back home with my parents for a few months to save money. However, previous to this I rented a two bedroom at in Brockley with a friend, and then with a tenant from Spare Room. Having rented throughout my 20s in Brockley, Balham and Clapham, I worked out that I had spent over £50,000 on rent alone; which, frankly, is extortionate. I was tired of throwing money away, and I felt like the summer of 2020 was the perfect time to take my rst steps on to the property ladder.”

Kirsty had long been admiring Peckham Place from a distance. She recalls, “Back in 2019, I frequently drove past the scheme while it was under construction, and for some reason, I got a warm, familiar feeling every time I saw it. When the time came for me to buy a property, I viewed developments in Greenwich, Clapham, Streatham and here at Peckham Place. From the moment I walked into Peckham Place I knew it was the one for me. I must have had a premonition that I would live here one day!”

Kirsty moved into her apartment at Peckham Place in August 2020 and timing was perfect. “I work in the music industry, which has been hit really hard by the pandemic, and ultimately my role within the business had to change. This was quite unsettling at the time, so having a new home on the horizon was an exciting distraction.” Kirsty found the whole process surprisingly smooth, describing the team at Peckham Place as “really hands on, patient and helpful throughout my whole purchasing journey”.

Kirsty purchased a one bedroom apartment on the sixth oor at Peckham Place using Help to Buy and couldn’t be happier with her choice. She says, “The apartment feels incredibly bright and airy – partly because of the oorto-ceiling height windows, but also due to the open-plan living arrangements. I think the sense of space and light are my favourite aspects of the property, in addition to the abundance of storage here. I also love the balcony! It’s like a little sun trap, so I’m looking forward to sitting outside in the summer, looking over south east London.”

peckhamplace.com

ROYAL ALBERT WHARF

Gallions Place

FROM £77,500*

Notting Hill Genesis, in conjunction with Vistry Partnerships, is launching a collection of 241 homes across three contemporary buildings, alongside new communal spaces and leisure facilities, which will become the community hub of the existing award-winning Royal Albert Wharf development. The apartments are tted to the highest speci cation, with a neutral design for residents to make their own. Residents will also bene t from a 12-hour concierge service, under oor heating across all properties, and secure bike storage in an underground parking area. Gallions Reach DLR station in Zone 3 is less than a two-minute walk from the development. Other convenient transport links include a variety of links by tube, rail, bike, boat, and even cable car, while the development is a stone’s throw from Canary Wharf.

nhgsales.com/sales-developments/gallions-place-royal-albert-wharf 020 3411 3833

WANDSWORTH

Willow Walk

*Based on a 25% share of the full market value of £310,000

FROM £130,000*

A superb collection of one, two and three bedroom shared ownership apartments, Willow Walk marks the nal chapter at the vibrant Wandsworth Riverside Quarter. Located moments from the River Thames and set across 13 oors, residents will enjoy expansive cityscape views as well as an enviable destination with stunning architecture, public spaces and amenities. Wandsworth Town station and Waterside Pier are both a few minutes’ walk away, providing stylish and speedy connections across the city. The popular green space of Wandsworth Park is also nearby.

peabodysales.co.uk/developments/willow-walk 020 7021 4842

*Based on a 25% share of the full market value of £520,000

EALING

Ealing Bond

FROM £137,500*

Ealing Bond is a collection of contemporary one, two and three bedroom apartments, each bene ting from a spacious open-plan living area, modern fully tted kitchen and quality internal speci cations. Externally, podium gardens create an oasis of relaxation in the capital. Ealing hosts underground, Crossrail and National Rail services to put the capital within reach. The development will also bene t from the upcoming Crossrail completion of the Elizabeth Line, putting Bond Street just a 13-minute tube journey away. This development is only available to applicants who live or work in the borough of Ealing.

sharetobuy.com/properties/165486

*Based on a 25% share of the full market value of £550,000

SITTINGBOURNE, KENT

Amber Fields

FROM £389,995

Amber Fields is a 159-home community containing a range of three and four bedroom homes from Redrow’s award-winning Heritage Collection. The new homes are set among pockets of green open space, including allotments and a community orchard to encourage people to "grow their own". There are direct trains via the high-speed rail line to London St Pancras and to the surrounding towns of Chatham, Maidstone and the historic city of Canterbury. The area boasts as selection of Ofsted-rated Good and Outstanding schools, and shops and leisure facilities are all within walking distance of the new homes. Once complete, Amber Fields will sit within a wider community of 1,500 homes, with a linear park running through the centre. A secondary school, primary school and local shops are also planned for the development.

redrow.co.uk/amber elds 01795 334 171

MAIDSTONE

Monchelsea Park

FROM £249,995

Monchelsea Park has just 15 two bedroom apartments remaining, all available with Help to Buy. The homes are spread across two sets of three-storey buildings, Bicknor House and Sutton House, and each offers two double bedrooms, a sweeping open-plan kitchen, dining and living room, ample storage, and an allocated single parking space. In addition to the main bathroom, there is also an en suite to the main bedroom. The development is in a great location, with only a 15-minute car journey into the historic Maidstone town centre. A network of new and existing cycleways and footpaths have been integrated into the new community to provide connections to the town centre and surrounding area too. Within walking and cycling distance are schools, supermarkets, a garden centre, pubs, and restaurants.

redrow.co.uk/developments/monchelsea-park-maidstone-212704 01622 294 205

BURNHAM, BUCKINGHAMSHIRE

Burnham Court

FROM £249,950

Chancery is offering a collection of one and two bedroom apartments with spacious living spaces and high-quality speci cations, including bespoke matt- nished kitchens with integrated Bosch appliances, and contemporary porcelain tiled bathrooms. Each apartment includes private off-street parking and Burnham Court is well situated for fast access to the M4, M40 and A4, just 23 miles from central London and a short 25-minute drive to Heathrow. Nearby, Burnham village high street has a comprehensive range of shops, including independent and family run stores alongside chain favourites. National Nature Reserve Burnham Beeches, an area of outstanding beauty, is also easily accessed by foot from the new homes, offering expansive woodlands lled with wildlife.

chanceryhomes.co.uk 01628 674 234

CASE STUDY

Priced out of their hometown of Hitchin, rst time buyers Beth, 25, and Tom, 26, are over the moon to have bought their rst home in the quaint village of Henlow, Bedfordshire, securing a three bedroom home at Annington’s May ower Park development.

The couple, who both grew up in the county, decided the time was right to get a place of their own but were faced with ever-increasing prices in their current location, limiting their options. Beth explains, “We looked at the pros and cons of moving slightly further away, and it quickly became apparent that living in Henlow would only enhance our quality of life. Plus, May ower Park itself is such a nd. It’s so nice and quiet but close enough to walk to the local shop and the railway station. We are very happy with our choice.”

After saving for over two years, Beth and Tom put down a 10% deposit and purchased their three bedroom home for £266,500. Tom said, “We were so excited to nd out we could afford to purchase a home instead of renting as we didn’t want to waste our money. Annington put us in touch with a mortgage adviser who was really helpful and gave us all the information we needed. When you’re a rst time buyer it’s quite a scary process, especially as we’ve never made a purchase quite this big before. He made us feel at ease which just added to the overall customer service Annington provided.”

May ower Park comprises a collection of 80 three bedroom homes, situated close to RAF Henlow. The emerging community is one example of Annington giving a new lease of life to former military married quarters, by lightly refurbishing them to provide homes for local rst time buyers and growing families. Beth added, “It’s great to have a chance to be a part of the community being built here. Tom and I were one of the rst to call May ower Park home and as more people start to move in its slowly starting to feel like we are part of something. A few of us have created a Facebook group to keep in touch and get to know each other; that’s exactly the sort of place we wanted.”

annington.co.uk