call-to-action call-to-action-mobile

First-time buyer activity at its highest level for over a decade

Mon 18 Mar 2019

1st time buyers

 

The number of first-time buyer mortgages has reached its highest level for 13 years, with some 370,000 new first-time buyer mortgages completed in 2018. Official trade body UK Finance has released data which shows that the highest number of first-time buyer mortgages since 2006 was reached last year, underlining the fiscal viability of purchasing a home for first-time buyers.

This consistent increase in the number of first-time buyers entering the property market can be seen as a result of; government schemes, greater mortgage availability and fewer rental properties on the market. Government policy has consistently targeted buyers who are keen to enter the property market primarily through their Help-to-Buy scheme and financial aid to first-time buyers, whilst competition amongst mortgage providers has brought a greater variety of finance options to the market. Amongst these mortgage varieties, we have seen more providers offering the 100% mortgage (or Loan-to-Value) and variations thereof, thereby opening up property to more people than ever before.

Richard Campo, managing director of Rose Capital Partners, said: “Lenders have been making it easy for first-time buyers over the last couple of months, with several providers announcing reduced rates on high loan-to-value mortgages.

“There are currently over 17,000 products available for first-time buyers.”

Twinned with the influx of mortgage varieties, and mortgages demanding a lower deposit value, is the reduced cost of these lower-deposit mortgages. The average two-year fixed rate LTV mortgage has fallen by over half a percent since last August, and big brands are also reflecting the consumer desire for LTV mortgages with Barclays, HSBC, Lloyds Bank, NatWest and Santander all cutting their rates.

Yopa chief property analyst Mike Scott agrees: “Since FTBs drive the whole housing market, allowing home movers to find a buyer and take the next step on the ladder, this is good news for the whole market,” he says.

In fact, the Halifax bank has recently found that first-time buyers are now so active in the marketplace that they make up the majority of home purchases bought with a mortgage in the United Kingdom. Based around the same UK Finance statistics, Halifax has found that the average price of a typical first home has jumped by 39%, from £153,030 in 2008 to £212,473 in 2018 with terraced houses and semi-detached remaining the most popular choices for first-time buyers.

"'My wife and I recently had the pleasure of working with Rachel to secure an apartment rental through EHB Residential. Not only was the apartment immaculate upon our arrival - with every small detail taken care of, Rachel worked hard to make the whole rental process as smooth as possible. p. Rachel shows a genuine interest in the needs of both the tenant and landlord. For us, this created a 'win win' situation where we were able to move into our dream apartment with minimum fuss while the owners of the property can rest assured that their investment is safe under Rachel's diligent management. p. I would highly recommend the services of Rachel and EHB residential.5* experience ' "
Paul Marshall

News Archive

January 2022

Homebuyers likely to ‘go for it’ in the New Year, says ehB Residential

December 2021

ehB Residential calls on sellers to capitalise on Boxing Day Rightmove boom

November 2021

Hesitant home sellers urged to take advantage of less competition as Christmas distracts fellow vendors

October 2021

‘October is the new September’ in home buying world

August 2021

Strong demand sees homes sell twice as fast as in 2019

Autumn will signal surge of new properties for sale as buyer demand continues

July 2021

End of stamp duty does nothing to dampen the appetite to move home

June 2021

Families looking for ‘the right home’ not deterred by end of stamp duty holiday

May 2021

Leamington estate agency calls for more properties amid 7.1% house price rise

April 2021

Demand outstrips supply as March date sees highest property sales in a decade

February 2021

Demand for family homes is driving price rise, as ONS announces 8.5% annual increase

ehB Residential co-founds new local portal for property searchers

No slowdown in demand for million-pound properties

Show apartments at Victoria Point offer ‘a room with a view’ over Victoria Park

January 2021

Early signs for 2021 property market look promising

Brexit deal, vaccine and lockdown are fuelling house moves

December 2020

Why not move to Leamington Spa? It’s officially the UK’s third happiest town

November 2020

Covid mega lab announcement puts Leamington on the house hunting map for biomedical and data scientists

Demand for family homes continues as Leamington named third happiest town in UK

Developer creates large luxury homes for people who don’t like gardening

Explosion in demand for family homes sees sales double at ehB Residential

October 2020

ehB Residential welcomes government pledge to help first time buyers

ehB celebrates a record breaking summer with our lettings department

September 2020

Million-pound townhouses offer Scandi-style living in Regency theme park

Leamington developer makes showhome video to help overseas or quarantined buyers