Massive rise in first time buyer numbers
We’re expecting big things in 2015 after a very successful 2014. The key to a bouyant market is arguably the number of first time buyers out there and if 2014’s figures are anything to go by we should be in for a great year.
The number of people buying a home for the first time hit a seven-year high last year, despite prices rising by an average of nine per cent.
The Halifax First Time Buyer Review charts a 22 per cent rise in those purchasing their first property, hitting a total of 326,500 last year.
It marked the highest level since before the financial crisis as average prices rose to £172,000.
However, the report noted that the average cost of a deposit for first-time buyers fell seven per cent in 2014 to £29,218 helped by record-low interest rates and an improvement in competition for mortgages.
House prices grew in the first half of the year, spurred by initiatives such as the government’s Help to Buy scheme.
But in the second half of the year fears of a housing bubble saw the Bank of England impose stricter lending limits on borrowers in a bid to cool the market.
The report also stated that Chancellor George Osborne’s stamp duty changes, announced in the autumn statement last month, reduced the average first-time buyer’s tax bill by £781.
The average age of a new purchaser rose to 30 from 29 in 2013, while the region with the oldest average age was London at 32, the report found.
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Source: Estate agent today