Average Age Of First-Time Buyers To Reach 35

With house prices at an all-time high and the age of first–time buyers on the rise, new research by comparethemarket.com forecasts the change in the property market over the next decade. By 2031, house prices in greater London are predicted to increase by a third, whereas the rest of the UK is likely to see a slighter lesser increase of 30%. Looking ahead, the UK property market is set to see incremental house price increases until the year 2040. UK house prices look set to increase by 58% overall. comparethemarket.com also analysed the age of first–time buyers in England dating back to 2006, to reveal how this will increase over the next ten years. Read more on the Property Wire website.

https://www.propertywire.com/news/average-age-of-first-time-buyers-to-reach-35/ 

First-Time Buyers £25,000 Worse Off Due To Stamp Duty Holiday

The stamp duty holiday has increased the price of first-time buyer homes by an average of 11.7% in England in the last year, and by as much as 31.5% in some areas of the country, according to research from GetAgent. The average price of a first-time buyer home in July 2020, just before the holiday was introduced, was £212,166. However, the latest figures show the average first-time buyer home now costs £236,982, an increase of £24,816 or 11.7%. On a broad regional level, the North West has seen the largest increase, with the average first-time buyer now paying £168,820 - a 16.9% jump since July of last year. Read more on the Financial Reporter website.

https://www.financialreporter.co.uk/finance-news/first-time-buyers-25000-worse-off-due-to-stamp-duty-holiday.html 

First Time Buyers Deterred By Environmental Issues

A survey suggests that almost half of first time buyers have at some time pulled out of deals because of environmental factors. The poll of more than 1,000 buyers for First Mortgage shows that 48 per cent of first timers have withdrawn from a property purchase because of one or a mix of eco-related problems. Flood risk was the most common concern cited by 56 per cent, followed by contaminated land on 52 per cent. Then came subsidence; natural hazards; nearby mining activity; pollution levels and noise pollution; water quality, nearby industrial activity; the threat or presence of radon gas, and parking congestion. Read more on the Estate Agent Today website.

https://www.estateagenttoday.co.uk/breaking-news/2021/8/first-time-buyers-deterred-by-environmental-issues 

Covid Sharpens Inequalities In UK Housing Market

Figures from building society Nationwide show one in four private renters think the pandemic has made it more difficult for them to buy a home. Sharp rises in house prices over the last year, driven by demand being stoked by the stamp duty holiday and prospective homebuyers rushing to snap up larger properties with gardens, has reduced housing affordability for first-time-buyers. Research from property search site Rightmove shows house prices jumped 5.7 per cent annually in July to reach a record high. Read more on the City AM website.

https://www.cityam.com/covid-sharpens-inequalities-in-uk-housing-market/

First-Time Buyer’s Plans Postponed By Pandemic

More than four out of ten aspiring first-time buyers delayed their plans to get onto the property ladder in 2020, research by Santander suggests. The lender found that 44% of first-time buyers put off their purchase during the pandemic. However, 63% of would-be buyers say that home ownership is even more important to them now than it was before Covid. The proportion of first-time buyers who say raising a deposit is the biggest barrier has risen from 30% in 2019 to 52% in 2021. Read more on the Mortgage Strategy website.

First-time buyer's plans postponed by pandemic | Mortgage Strategy 

A Perfect Storm For FTBs As Listings Dwindle And Prices Continue To Rise

Agreed sales and average house prices have continued to rise ahead of the stamp duty deadline as the number of new listings entering the market fell for the second month in a row - a perfect storm for those attempting to get their first foot on the property ladder. According to the latest data and market analysis from RICS, during May, the number of people looking to buy a new home continued to rise, with 32% more respondents noting an increase from prospective buyers. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/a-perfect-storm-for-ftbs-as-listings-dwindle-and-prices-continue-to-rise.html 

First-Time Buyers In England Offered New Homes At Up To 50% Off

First-time buyers in England will be able to apply for a discount of up to 50% on a new-build home under a government scheme. The First Homes initiative could save buyers £100,000 or more. But some experts say that with demand for these cut-price homes likely to exceed supply, it could spark a scramble for properties and add more fuel to the house price boom. The government says the scheme is aimed at first-time buyers in the area where the homes are built, many of whom will be keyworkers such as NHS staff. Read more on the Guardian website.

https://www.theguardian.com/money/2021/jun/04/first-time-buyers-in-england-offered-new-homes-at-up-to-50-off

Ftbs Prepared To Wait To Purchase A Property

First time buyers have delayed purchasing their properties by six months and three weeks as a direct result of the pandemic and are prepared to wait longer before they attempt to purchase a property, according to research by estate agency, Yopa. Yopa commissioned Censuswide to carry out a survey of 2,000 people planning to buy their first property in the next year and found that 70% had been furloughed at some point, and 1 in 6 have lost their job as a result of the pandemic. Over half of those surveyed experienced a fall through in a property purchase during the past year. All of these factors have combined to delay the property plans of first-time buyers. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/ftbs-prepared-to-wait-beyond-the-stamp-duty-holiday-to-purchase-a-property.html 

81% Of First-Time Buyers Rejected For A Mortgage Since Covid Outbreak

Only 19% of prospective first-time buyers were able to get a mortgage on the first attempt over the past 12 months, representing a huge change from the 48% that were able to pre-Covid-19. 38% were rejected for a mortgage once, whereas 43% say they were rejected for a mortgage more than once. This shows a significant shift from pre-Covid-19 when a third (36%) reported being rejected once and only 17% said they had been rejected more than once. The main reason for a rejected mortgage application was that the prospective buyer has poor credit history (41%), up from 19% in March 2020. Read more on the Financial Reporter website.

81% of first-time buyers rejected for a mortgage since Covid outbreak | Financial Reporter 

Final Rush Begins As Stamp Duty Holiday Ends In Under Ten Weeks

 With the stamp duty holiday extension ending on Wednesday 30th June, home buyers now have just under ten weeks, to complete their purchases. Amidst an already feverish property market, the ticking clock of the stamp duty holiday is set to turn the heat up further as the time period left is just under the 77 days that the average property purchase takes to complete. According to research by MoneySuperMarket, the average purchase for a first-time buyer takes 99 days to complete; home movers take 88 days to complete; while those re-mortgaging take 71 days. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/final-rush-begins-as-stamp-duty-holiday-ends-in-under-ten-weeks.html

First-Time Buyers Offered More Choice Of 90% Mortgages

First-time buyers have more choice of mortgage deals after several banks and building societies this week launched 90% home loans. During much of last year, 90% loan-to-value (LTV) deals requiring a 10% deposit were thin on the ground, but in recent weeks more lenders have stepped back into this market. A three-year fixed-rate 90% deal priced at 3.4% and with a £199 upfront fee has been launched by Nottingham building society. It also rolled out a two-year fix at 85% LTV with a rate of 2.6% that has no fees. Read more on the Guardian website.

https://www.theguardian.com/money/2021/feb/20/uk-first-time-buyers-offered-more-choice-of-90-per-cent-mortgages

FTB Mortgage Struggles Compounded By Pandemic

New data has revealed that challenges for first-time-buyers attempting to secure a mortgage are being intensified by the ongoing pandemic, as many continue to struggle with credit and self-employment in the current Covid-19 environment. According to the data, the number one reason for a rejected mortgage application was that the prospective first-time buyer is self-employed or a contract worker (20%). This is a big change on pre-lockdown First Time Buyer Index results in March when it was only the 9th most common reason for an application being declined. As a result, nearly a quarter (23%) say they have given up being self-employed to secure a mortgage. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/ftb-mortgage-struggles-compounded-by-pandemic.html

First Time Buyers: Coronavirus – Parliamentary Written Answer

Colleen Fletcher: To ask the Secretary of State for Housing, Communities and Local Government, what estimate his Department has made of the number of completed house sales involving first-time buyers during each month of the covid-19 outbreak; and what assessment he has made of the effect of the covid-19 outbreak on the level of home ownership among first-time buyers. 

Christopher Pincher: COVID-19 has had an unprecedented impact on the economy and there was a 43 per cent fall in first-time buyers claiming stamp duty relief in the 3 months to June 2020, broadly in line with a 45 per cent fall in residential transactions overall. We know many first-time buyers had their plans disrupted and that is why the housing market was one of the first sectors to reopen. We have provided a comprehensive economic package for people across the country and are keeping the impact of COVID-19 on first-time buyers under review.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-10-20/106371 

Share Of Homes Bought By First-Time Buyers Expected To Drop

The share of homes purchased by first-time buyers in the UK looks likely to drop for the first time in five years, as major banks pull low-deposit mortgages off the market in response to the Covid-19 crisis. Forecasts released by property portal Zoopla show that, despite a surge in demand earlier this year, first-time buyers will make up around 33.9% of home purchases in the UK for 2020, down from a 10-year high of 34.9% in 2019. If forecasts prove correct, that will mark the first decline in house sales to first-time buyers since 2015. Read more on the Guardian website.

https://www.theguardian.com/money/2020/sep/28/share-of-uk-homes-bought-by-first-time-buyers-expected-to-drop-covid-mortgages 

Half Of FTBs Delay Buying A Home Due To COVID-19

The pandemic has caused 46% of first-time buyers to delay their plans of purchasing a home by an average time of nearly a year. 17% have had a property sale fall through whilst 20% have said they pulled out of buying due to lockdown. The pandemic has also caused 49% of first-time buyers to worry about their financial security.  39% of prospective first-time buyers are now reconsidering their property type due to lockdown, with 42% saying that having a garden or balcony is a top priority and 33% now looking for properties near the countryside or parks. Read more on the Property Wire website.

https://www.propertywire.com/news/half-of-ftbs-delay-buying-a-home-due-to-covid-19/ 

Demand Rises For First-Time Buyer BTL Mortgages

New data from Legal & General Mortgage Club has revealed growing demand among first-time buyers who want to enter the buy-to-let market. Searches through its SmartrCriteria tool show that the criteria search combination for first-time buyer, first-time landlord and non-owner occupier has seen an 18% increase since the beginning of September. Searches for these applicants with these circumstances ultimately rose from fourth to first place. The data also showed that ‘holiday lets’ was the second most searched term among advisers in September, moving from the top spot in August. Read more on the Finance Reporter website.

https://www.financialreporter.co.uk/mortgages/demand-rises-for-first-time-buyer-btl-mortgages.html 

No Silver Lining For UK First-Time Home Buyers Even If Prices Collapse

First-time buyers in Britain will struggle to get on the property ladder even if the coronavirus recession triggers a collapse in house prices, a leading thinktank has warned. Sounding the alarm after Britain’s economy plunged into the deepest recession since records began, the Resolution Foundation said house prices could fall by more than a fifth by summer next year. It said although this might sound as if it should benefit young adults looking to get on the property ladder, first-time buyers would struggle because the Covid recession would also drag down their incomes while banks made it harder to get a mortgage. Read more on the Guardian website.

https://www.theguardian.com/money/2020/aug/13/no-silver-lining-for-first-time-home-buyers-even-if-prices-collapse

First-Time Buyers Opting For Longer Mortgages

Nearly half of first-time buyers – 45 per cent – picked a mortgage product of 30 years or over in 2018 to 2019, shows the latest English housing survey. Published by the MHCLG, the survey shows that in 2008 to 2009, the proportion of FTBs who opted for a mortgage of this length stood at 33 per cent. Overall, in 2018 to 2019, 19 per cent of mortgages were 30 years or longer in length and in 2008 to 2009, 7 per cent were. MHCLG says that this could be indicative of mortgagors adjusting their monthly costs over time – something renters do not have the luxury of doing. Read more on the Mortgage Strategy website.

https://www.mortgagestrategy.co.uk/news/first-time-buyers-opting-for-longer-mortgages/

No Quality Threshold For Help To Buy Funding

The government has decided not to force housebuilders to meet a specific quality threshold in order to access funding under the Help to Buy scheme. Publishing details of the terms under which the scheme will run between 2021 and when it closes in 2023, the government said the equity loan product, which has been instrumental in supporting the housebuilding industry, would be restricted to first-time buyers and subject to regional price caps. In addition, the government has laid out a series of further requirements that  builders will have to fulfil, such as signing up to the New Homes Ombudsman scheme. Read more on Housing Today.

https://www.housingtoday.co.uk/no-quality-threshold-for-help-to-buy-funding/5104509.article

First Homes Plan Could Hit Social Housing Numbers

Housing associations have raised concerns over the government’s plan to provide first-time buyers with heavy discounts on new homes, saying the programme could make it more difficult to provide homes for lower-income families in the future. In a consultation document, the government said that it would like to see more developer contributions used to fund the delivery of First Homes. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/sector-bodies-raise-concerns-that-first-homes-plan-could-hit-social-housing-numbers-64997