Explaining the rise in first-time buyers

Throughout 2019 there has been a steady increase in first time buyers jumping onto the property ladder. With first-time buyer mortgages now accounting for over half of all mortgages taken out in 2019, the true buying power of this section of the market is evident. We break down just what has influenced this surge in activity throughout the year.

Brexit Bounce
It would be careless not to consider the effect that the general election and Brexit have had on the appetite of prospective buyers. But surprisingly, the number of first-time buyers has continued to rise and has been constant throughout the year, which is particularly impressive within this climate of uncertainty. Now that the general election has been completed and the UK has a majority government, the climate moving into 2020 is extremely buoyant.

A Helping Hand to Buy
The extension of the Government Help to Buy scheme is another enticement for first-time buyers with the deadline for opening a Help to Buy ISA extended to the end of November, allowing a last-minute spike in applications. It has encouraged the younger generation to consider home owning as a real possibility with the scheme allowing contributions until 2029.

According to HM Treasury data, a total of 234,074 property completions have been support by the Help to Buy ISA scheme. It has also resulted in reducing the median age of a first-time buyer from 30 years old to 28 years old, indicating that younger people are now entering the property market and reaching the milestone of buying a first home. This age is set to reduce further as more first-time buyers save for their deposits, so it’s clear that the scheme has been a real success as well as being a great help for buyers to help make their dreams become a reality.

Variety in the market
Finally, it’s worth noting that there is a greater variety of homes available on the market, which has only accelerated the stream of sales to first-time buyers. Survey findings concluded that younger buyers understood and appreciated period style features such as high ceilings, fireplaces, and bay windows which is something usually associated mostly with more mature buyers.
These characteristics have been described by those surveyed as extravagant and interesting. As such, these features are beginning to be incorporated into new-build developments which ensures that the character of British property is maintained with the continuing demand from all potential buyers looking on the market.