Mapped: The least expensive space to purchase your first house | EUROtoday

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The variety of first-time consumers stepping onto the property ladder jumped by almost a fifth final yr, in response to evaluation by a serious financial institution.

Halifax mentioned there have been 341,068 first-time consumers final yr, up 19 per cent in contrast with 2023.

The yr 2023 noticed first-time purchaser numbers drop off by 22 per cent yearly, within the robust mortgage fee surroundings.

Despite the rebound, final yr’s estimated whole was not as huge because the 369,870 first-time consumers recorded in 2022.

The common deposit they’re stumping up is £61,090 to purchase a house valued at £311,034 usually.

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Halifax mentioned the common first-time purchaser is 33 years outdated, two years older than a decade in the past once they had been 31.

At an area stage, the Shetland Islands have the youngest common first-time purchaser at 27. At the opposite finish of the dimensions, Slough in Berkshire and Sutton, south London, have the oldest first-time consumers at 38 – 5 years above the UK common.

The financial institution mentioned first-time consumers made up greater than half (54 per cent) of all house purchases made with a mortgage final yr.

Nearly two-thirds (62 per cent) of mortgage completions final yr had been in two or extra names, with 38 per cent beginning on the property ladder on their very own.

Amanda Bryden, head of mortgages at Halifax mentioned: “Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023. This likely reflects an improvement in mortgage affordability as interest rates eased and stabilised, providing more certainty for those stepping onto the ladder.”

“Many are still teaming up to make the numbers work, with most buying homes jointly. This makes sense given the average deposit of £61,090 and an average starter home price of £311,034, which can be a stretch for those with a single income. It’s not surprising the average first-time buyer is now 33 years old, the oldest in the last two decades.

“Despite the challenges of saving for a deposit and rising home costs – up 8 per cent in 2024 – it is encouraging that first-time consumers nonetheless account for greater than half of all new mortgages.”

The research was based on data from Halifax’s own housing statistics database, figures from trade association UK Finance and official earnings data.

Ms Bryden added: “Looking forward we anticipate modest home worth development in 2025, however upcoming stamp obligation threshold reductions will not make issues any simpler within the quick time period for first-time consumers.”

The “nil fee” stamp duty band for first-time buyers will reduce from £425,000 to £300,000 from 1 April. Stamp duty applies in England and Northern Ireland.

Matt Thompson, head of sales at London-based estate agent Chestertons, said: “In December 2024 in addition to the start of this yr, the property market noticed significantly excessive demand from first-time consumers who had been motivated to beat April’s stamp obligation deadline.

“This spike in buyer activity led to the majority of properties exchanging hands for the asking price, although some sellers, especially those in a rush to sell, agreed to enter price negotiations.”