Despite being less than halfway through the year, first-time buyers account for 50% of homes sold in the capital since January of this year. Meanwhile, across the country first-time buyers also broke records, accounting for 33% of purchases, something accredited to the recent fall in mortgage rates. It’s no secret that getting onto the property ladder can be challenging, but it certainly seems that an ongoing desire from aspiring new homeowners means the market continues to thrive as we move ahead in 2024.
Overall, London is more affordable for buyers looking to purchase a one-bedroom property, but data shows that many new buyers are looking for something bigger, particularly, for instance, if they have children. Rather, first-time buyers continue to view and ultimately secure two-bedroom properties. Aneisha Beveridge of Hamptons, said, ‘In a bid to escape the heated rental market, first-time buyers have dominated the sales market this year, making up a record third of all purchases. This unprecedented move comes despite a limited package of government support measures.’
However, Hamptons also cautioned that this current uptick could slow as limited supply still makes homeownership extremely difficult to achieve for large swathes of the population. But the draw is entirely understandable, as monthly payments on a mortgage are now cheaper than renting in many parts of the UK. In 2023, 41% of London property purchases were made by first-time buyers, which at the time was a significant increase. And whilst first-time buyers are spending an average of £422,660 on a new home in London, it’s a remarkable £108,710 less than the price of a similar property in 2020.
Official figures show house prices are still down in general, and mortgage rates remain higher than two years ago, but nonetheless, first-time buyers are determined to make their dream of home ownership a reality. Willing to look beyond the pressures of getting a foothold on the property ladder, signs of an ongoing recovery are making a real difference. And if the pace of buyer activity continues at this same rate, the UK looks set to see at least 363,000 new homeowners this year alone. A definite sign of better things ahead.
Sources: PropertyWeek, Yahoo News
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