First-time buyers continue to dominate the UK property market and the mortgages taken by them has reached a 12-year-high in 2018.
An analysis by Yorkshire Building Society (YBS) showed that 367,038 first-time buyers secured mortgages in 2018, up from 362,800 in 2017.
The analysis indicates that the number of first-time buyer mortgages has exceeded 2007 levels when 359,900 first-time buyers took out mortgages. It’s almost double of that in 2008 (193,300), when the financial crisis impacted the housing market, and stands just 9 per cent lower than the pre-crisis peak of 402,800 in 2006, YBS said.
The figures suggest first-time buyer levels have continued to rise and now represent half of all homes bought with a mortgage. This signifies that the first-time buyer mortgage market share is at its highest since 1995, when 53 per cent of all mortgage-financed homes were bought by first-time buyers.
Many developers are now focusing on first-time buyers, as they are now a dominant buyer group. Strawberry Star is coming up with a mixed-use residential scheme for London’s first-time buyers in Luton, the UK capital’s top commuter belt town. The scheme LU2ON offers London lifestyle with 785+ apartments 4-star hotel, retail, gym, and many other amenities. LU2ON offers 400 apartments in phase 1 at prices achievable for first-time buyers. For more, visit LU2ON.
The figures indicate that Government initiatives such as Stamp Duty relief, Help to Buy equity loans and Help to Buy ISAs may have made an impact. Over the past three or four years, we’ve also seen more mortgage lenders offering 95% loan-to-value mortgages, as well as strong competition driving mortgage rates down, says YBS