With more number of people now taking their first step on the property ladder, the first-time home buyers are emerging as an important segment for new build homes in the UK.
The first-time buyers accounted for 50 per cent (81,000 mortgages) of all new residential mortgages in the UK during the first quarter of 2018. Data revealed by the UK Finance showed that the combined value of mortgages taken by the first-time buyers was £13.2 billion during the first quarter of 2018, registering a 6 per cent increase over the corresponding period last year.
Around 365,000 first-time buyers completed on a mortgage in 2017 – the highest since 2006. Interestingly, the average income of the first-time buyers has gone up consistently, enabling them to secure mortgages easily now.
Since 2009, the average income multiple for a first-time buyer mortgage increased 16 per cent from 3.1 times the average income to 3.6 times. According to UK Finance, the average household income for a first-time buyer is now £41,760.
The stakeholders of the UK housing industry are now laying special emphasis on the first-time buyer segment. “With affordability a major driver for many first-time buyers, ensuring new homes hit the right price point and deliver the right product is key to maximising demand from this important group of buyers,” Savills said in its latest market commentary.
Strawberry Star has been focusing on the first-time buyer segment, especially in London zones 3-9 and its commuter belts, with unique schemes. The first of such initiatives will come up in Luton, where a residential-led integrated mixed-use scheme is set to change the property market landscape.
A series of government-led initiatives have been introduced to help people take their first step on the property ladder