First-time buyers (FTBs), one of the largest house buyer groups in the UK, as well as next-time buyers (second-time buyers) are propelling the growth of the housing market. There is a heightened activity from both FTBs, who account for a third of all buyers, and second time buyers due to greater supply of high LTV mortgage products as and access to affordable commuter home developments.
Data from Trussle, the online mortgage broker shows that the number of lenders bringing 95 per cent LTV mortgage products to the market has grown steadily since March with 49 currently doing so. Nearly two thirds (60 per cent) of the leads for these products were for FTBs, whilst the rest consisted of second time buyers (34 per cent) and remortgages (6 per cent).
The average house price for a UK home reached £234,000 in July, according to the Zoopla house price index. This capital growth, up 30 per cent since the previous market peak in 2007, alongside the healthy UK average rental yield of 4.3 per cent, has driven the private rented sector value growth to 1.4 trn across the UK in the last year, up 5.8 per cent. This offers significant incentive for buyers to accrue value, equity, and rental income.
With the ability to take advantage of the Help-to-Buy and mortgage guarantee schemes, the lifetime individual savings account, as well as the stamp duty land tax; FTBs and second time buyers have opportunities to explore multiple options. When priced out of popular city centres, commuter town locations that offer comparable amenities and quality of life whilst enabling easy access through quality infrastructure, have proven popular among these house buyer categories.
Properties aimed at first-time buyers and second-steppers are still seeing high demand