Partly Cloudy

Partly Cloudy

max temp: 4°C

min temp: 0°C

Search

Size of deposit is still a problem for buyers

PUBLISHED: 12:42 01 February 2018 | UPDATED: 12:42 01 February 2018

Couple With Keys Standing Outside New Home

Couple With Keys Standing Outside New Home

monkeybusinessimages

The number of first-time buyers in 2017 was the highest for a decade, a new report reveals.

The number of people taking their first step on the property ladder across 2017 was the highest in a decade, despite deposit sizes having doubled over that time, a report has found.

There were an estimated 359,000 first-time buyers across the UK in 2017, taking levels nearly back to 2007, when 359,900 people made the jump on to the property ladder, according to Halifax.

But first-time buyers now need to find an average deposit of £33,339 - a 91% increase compared with £17,740 a decade ago, the research found, reflecting house price growth in recent years as well as people putting down bigger percentages of the house price.

In London, first-time buyers face needing an average deposit of £112,604.

The average age of a first-time buyer across the UK in 2017 was 31, two years older than a decade ago.

The latest Halifax First-Time Buyer Review found the number of first-time buyers increased by 6% annually in 2017.

First-time buyer numbers have bounced back compared with a low point of 192,3002 in 2008 and are now just 11% below a recent peak of 402,800 in 2006.

First-time buyers now account for nearly half (49%) of all house purchases with a mortgage, compared with just over a third (36%) a decade ago.

Russell Galley, managing director, Halifax said: “A flow of new buyers into home ownership is vital for the overall wellbeing of the UK housing market.

“This 10-year high in the number of first-time buyers shows continued healthy movement in this key area despite a shortage of homes and the ongoing challenge of saving enough of a deposit.”

He said low mortgage rates and first-time buyer schemes have helped the sector become a much bigger segment of the market.

Copeland in Cumbria was identified by Halifax as the most affordable district in the UK, with an average property price equating to 2.9 times the local average gross annual earnings.

Scotland dominated the list of the most affordable areas for first-time buyers, while London made up the least affordable top 10.

The least affordable area was identified as Brent, where the average first-time buyer property price is 12.9 times gross average annual earnings.

Housing minister Dominic Raab said it was good to see more people getting on to the housing ladder.

He said: “Our initiatives such as Help to Buy have helped over 440,000 families on to the housing ladder since 2010.

“This comes on top of the latest data from the National House Building Council showing the highest number of new homes registered to be built for a decade.”

Here are the numbers of first-time buyers in 2017 across the UK, according to Halifax:

North East, 16,430

Yorkshire and the Humber, 30,003

North West, 38,263

East Midlands, 27,309

West Midlands, 31,529

East Anglia, 12,696

Wales, 16,196

South West, 29,399

South East, 69,326

London, 42,983

Northern Ireland, 9,410

Scotland, 35,577

Domestic abuse campaigners in Suffolk have welcomed news that crimes will be treated as more serious if they are committed in a domestic setting under new sentencing guidelines.

An Ipswich medium will spook celebs this week as part of a new television series.

Suffolk’s superstar singer-songwriter Ed Sheeran has been awarded a Brit Award for ‘Global Success’.

Ipswich Borough Council is set to waive all fees for funerals of children from within the borough after a change in its fee structure was agreed at a full council meeting.

A winter weather front nicknamed the Beast from the East is set to strike the region early next week - causing temperatures to plummet and the chance of snow flurries.

Renewed concerns have been raised over the handling of proposals to cut free home-to-school transport for thousands of children in Suffolk.

Suffolk’s highways website has been inundated with problem reports – many from frustrated drivers issuing angry warnings about the “dangerous” condition of the county’s roads.

Over 1,000 people have signed an MP’s petition calling for the trust behind the under-fire Felixstowe Academy to be removed, but senior leaders still insist they will turn around the school.

A ward councillor concerned about the closure of one of Ipswich’s largest care homes has said she is “puzzled” by the lack of demand for its services – as fellow health leaders claim they are seeing a spike in older people needing care, not a fall.

Two new shops are the latest to join a rapidly expanding out-of-town shopping complex near Ipswich, bosses have announced.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24