325,000 first time buyers took out mortgages in 2014
The Halifax have released a report today that shows a big jump in the number of first time buyers that managed to buy a home in 2014. The number of first tie buyers that got a foot on the ladder increased by 22% over the previous year to over 325,000. The report went on to say that the main driver for the increase was an increase in the flow of cheap mortgages along with the Help to Buy Scheme that allows buyers to purchase a home without having to put down a big deposit. The recovery in the jobs market has also helped buyers and given them the confidence to make the move.
Whilst house prices have continued to rise in most parts of the UK it would see that buying a home is now more affordable than it has been for some time. Recent data suggests that just under 30% of monthly income is spent on mortgages with is down from 50% back in 2007
. Many of these first time buyers wouldn't be able to move if they were not able to take advantage of the Help To Buy Scheme and see the scheme as there only way of getting onto the housing ladder. It is unlikely to be replaced with anything similar when it is withdrawn and people siply don't want to be left behind. The outlook for property market over the next couple of years is said to be quite stable with modest house price inflation across the UK.
Posted in: lifetenants.co.uk/blog