First-Time Buyers Supporting The Property Market
According to a new report from Zoopla, first-time buyers are continuing to prop up the property market in 2019, with this group responsible for the majority of property purchases this year. Thanks to favourable mortgage rates, as well as more flexible mortgages including a higher loan-to-value ratio, first-time buyers are now in a more favourable position than ever to purchase a property.
It would appear that rather than the current train of thought, which would suggest that first-time buyers are doing anything they can in order to join the market, the reality is that they are taking a much more considered approach. Typically, first-time buyers are looking for three bedroom properties which will provide them with a longer term home to grow into which is a stark contrast to previous generations who began with a “starter property” which they quickly moved out of in order to purchase something larger.
Since 2010, first-time buyers as a group have grown by 85%, according to statistics from UK Finance, and this trend is not stemming.
“First time buyers have been the driving force behind the housing sales market in recent years. Lower mortgage rates, and improving mortgage availability have supported the growth in FTB numbers across the country” explains Richard Donnell, research and insight director at Zoopla.
“Despite increased barriers from high house prices in southern England and mortgage regulations, the appetite to buy their first home remains strong. Whilst the outlook is more challenging in London, growth in FTB volumes is expected to be driven in regional markets where affordability remains attractive, supported by greater availability of higher loan to value mortgages,” he continues.