First-time buyers are bouncing back and claiming their stake in homes for sale after being banned from the market by nervous lenders last year.

Between 2019 and 2020, the proportion of first-time home buyers fell from 56 percent to 51 percent. However, the data gathered by Reallymoving shows that they are making a comeback thanks to the return of high loan value mortgages.

Earlier evidence shows that first-time buyers now make up 55 percent of the market.

First-time buyers have recovered so quickly because mortgage affordability has remained the same despite rising prices due to competitive rates, and mortgage payments cost 31 percent of net wages.

While property price inflation was seen among all types of buyers, those who bought for the first time saw a 2.5 percent increase, compared with a 10 percent increase for newcomers and 15 percent for investors.

The cheapest part of the UK for first-time buyers to get on the property ladder is the North East, where a starter home can cost an average of £ 137,000. In stark contrast is London, where young buyers can expect more than £ 430,000 – three times as much.

Rob Houghton, CEO of Reallymoving, said, "While there is a clear link between affordability and rising property prices, mortgage rates remain at all-time lows and the government is helping first-time buyers through [multiple] Many can still afford to buy their first home.

"Anyone who thinks the recent double-digit house prices don't mean this should check the property prices locally and speak to a mortgage broker to find out what they can afford in their desired area. If working from home becomes more regular in the future, it can even open up fantastic opportunities for first-time buyers to move up to cheaper areas if they commute less regularly. "

Samantha Partington is a freelance trade and consumer journalist writing on real estate and personal finance. She previously worked for the Daily Mail and Property Week. She is the former associate editor of Mortgage Solutions and editor of Specialist Lending Solutions. Prior to becoming a journalist, Samantha worked as a mortgage broker and most recently for a mortgage, bridging and secured lender. Samantha is CeMAP qualified. Follow her on Twitter @ SamJPartington1.

source https://seapointrealtors.com/2021/08/11/first-time-buyers-bounce-back-spurred-on-by-cheap-mortgage-rates/

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