Fewer first-time buyers around in the UK property market
First-time buyers in the UK are getting older, and there are now far fewer people getting onto the property ladder than there were in previous years, it has been reported.
According to the latest research from estate agency Hatched, over the course of the last 17 years since the turn of the century, there has been a marked fall of 27 per cent in terms of the number of newcomers able to get themselves onto the property ladder.
One of the main reasons for this is the fact that house prices have climbed markedly since 2000. It said that in that period, buyers had faced massive increases of some 181 per cent in terms of what they need to pay for the average home.
This has, in turn, taken the average deposit cost ever higher, and buyers who are looking to get themselves a home for the first time now need to fork out more than £20,000 on average to be able to get a mortgage. With this in mind, it's no surprise that there has been a fall in the volume of first-time buyers coming to market, as most younger people now choose to rent rather than buy.
In addition to the fact there are fewer buyers around, the data also shows that the average first-time buyer is far younger than they were in years gone by. Hatched reports that the typical newcomer to the property market is now aged between 25 and 34, far older than we have seen in the past.
"The fact that the number of first-time buyers has been steadily decreasing since the start of the millennium might be due to the increasing difficulties people face when trying to become homeowners.
“These difficulties are typically around property availability and suitability, lending and help to buy, and of course the overall price aspect," said David Martin, chief operating officer at Hatched.
He said that as they face more difficult market conditions when coming to buy, many young people are now becoming members of Generation Rent, rather than trying to get themselves onto the property ladder.