First-time buyers: The numbers

Are you a millennial? Maybe you’re Generation Z? Wherever you fall age-wise, it’s likely that you’re renting with friends or in a house share right now.

Should you have ambitions to leave your rental and own your own home, it might be a while before you can afford it. In fact, according to recent research by UK Finance, the average age of first-time buyers in the UK currently stands at age 30, which is seven years older than in 1960 and. On average, deposits are topping the £20,000 mark, too.

But what are the factors that are affecting first-time buyers in 2018? If you’re hoping to hop onto the property ladder in the future, here is a look at the current stats so you can gain an insight into how the property market looks right now.

Location, Location

It’s true what they say about location being important in any house search – and the stats speak for themselves. Where you are in the country has an impact on how likely you are to be able to afford property of your own.

Perhaps unsurprisingly, things are looking most expensive in the capital. As of 2017, those hoping to purchase their own home in London had to think about saving 13 times their salary and the London region was the least affordable area for first-time buyers over the course of 14 out of the last 19 years.

Those based in the North East fared better. Those hoping to buy in the region had to expect to spend 5.5 times their salary on their new home. Dramatically different to London, this area was the most affordable in England and Wales 18 out of the last 19 years.

When compared side-by-side, these stats reveal that there is a distinct affordability gap for first-time buyers in England and Wales.

Help at Hand

While these numbers make for interesting reading, there are things that have been introduced to assist first-time buyers in the coming years. One of the most promising of these is the announcement in the autumn budget that there are plans to launch a new Help to Buy equity loan scheme, which will include regional price caps.

These caps are a potential step towards closing the affordability gap in the country. combined with some of the other announcements made in the budget, such as further cuts to stamp duty for first-time buyers, fortunes may be changing for those hoping to buy.

What Next?

If you’re close to making the leap to becoming a homeowner, make sure you get the right guidance. Speak to the experts and get advice such as that offered by Andrews Online before you take the plunge. Buying for the first time is a huge step. Take it with care.