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First-Time Buyers and Their Unseen Impact on Home Sellers in the UK

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Mon 02 Oct 2023

First-Time Buyers and Their Unseen Impact on Home Sellers in the UK

Even if you are an existing homeowner looking to sell your home, the plight of the first-time buyer is a huge factor in what you do next. You have your own issues to contend with, but the UK property market requires a steady influx of first-time buyers coming in to ensure there is movement in the market.

Consistency in first-time buyer home loans agreed

New figures published by the Halifax suggests for the opening eight months of 2023, first-time buyers accounted for 53% of all home loans agreed. This is very similar to the 2022 figures over the same time frame, where first-time buyers accounted for 52% of all home loans agreed.

A drop in actual first-time buyers in UK housing market

This seems relatively positive, especially the challenges in the housing market in 2023, but Halifax also state the number of first-time buyers in 2023 has fallen 22% in comparison with last years’ figures.

There are barriers to entry for first-time buyers

This is a concern, and a reminder that arranging a loan is no guarantee that a purchase will follow. When you consider the average deposit required for a home in the UK is now £54,116; there are notable barriers to entry.

The average price paid by first-time buyers in buying a home is £288,030, which represents a slight fall on the previous figures.

What are Halifax Mortgages saying to these changes?

Kim Kinnaird, director of Halifax Mortgages, said: “Getting the keys to your first home is a significant milestone in anyone’s life - we’ve lent £5.5 billion to first-time buyers in the first six months of the year, helping people make their home-owning dreams a reality. While lenders are ready to help people get on the property ladder, the growth in house prices over the past decade means raising a suitable deposit remains a significant hurdle. There is then finding the right property in a housing market with limited supply, coupled with the sharp rise in interest rates more recently, meaning there is lots to consider for any first-time buyer.”

Kim Kinnaird continued by saying: “The average age of those buying their first property is now 32, rising by two years over the past decade, most likely reflecting that increasing costs are making the road to home ownership longer. Also, when people are ready to buy a home, most are doing so in joint names which helps both in terms of costs and affordability. The expected further fall in house prices this year - alongside stronger income growth - may somewhat offset higher interest rates, which will be welcome news to many. Further, there are some areas which continue to be great options for first-time buyers – the average cost of a first property in Scotland, as an example, comes in at almost £100,000 less than the UK average.”

What can homeowners do?

While homeowners cannot go out and force first-time buyers to find money and make a suitable offer on their home, there are ways you can make your home more appealing to buyers. If you are considering moving soon, we are here to help you.

At Coakley & Theaker, we are specialist estate agents in Bury St Edmunds and surrounding areas, with a proven track record in selling homes. Our experience has seen us work through many peaks and slumps in the local housing market, and we have the expertise to give you confidence when selling your home.

At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today by calling us on 01284 769691.