The number of first-time house-buyers reached an 11-year high in 2017 in the UK with 365,000 of them aspiring to buy new homes. In 2006, the number of first-time buyers was almost the same.
Data released by UK Finance showed that 2017 witnessed an annual increase of 7.4 per cent of first-time buyers from 340,000 in 2016. This also indicates that the demand for housing is on the rise even as the market is facing supply constraints.
The average age of the first-time buyer is 30 years and has an income of £41,000. There were 30,800 new first-time buyer mortgages completed in December 2017 with £5.1bn being lent to them.
The new homeowner remortgages also went up last year. There were 30,500 new homeowner remortgages completed in December, some 7.4 per cent more than in the same month a year earlier. The £5.2bn of remortgaging in the month was 8.3 per cent more year-on-year.
There were 5,300 new Buy-to-Let (BTL) house purchase mortgages completed in December and by value it was £0.8bn of total lending in December 2017.
UK Finance is a new trade association, which was formed to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The data provided by UK Finance reflects the health of the UK housing market.
Paul Smee, Head of Mortgages at UK Finance, said: “2017 saw the number of first-time buyers reach its highest level in a decade, which is welcome news for those getting started on the housing ladder."