First time buyer funding
- The average deposit paid by a first-time buyer was £43,693. Perhaps unsurprisingly, almost two-thirds (63%) were in the top 40% income bracket.
- Just over two thirds (68%) of first-time buyers paid less than a 20% deposit, while a fortunate 5% were mortgage-free.
- 85% reported funding the purchase of their first home with savings, whilst 27% received help from family and friends and 8% used inheritance.
- Despite high costs, first-time buyers accounted for 53% of all home moves in Q3, the highest proportion in over a year. With increasing stability and the likelihood of mortgage rates coming down, more first-time buyers may enter the market in the coming months. Source: #Dataloft (https://dataloftinform.co.uk/), English Housing Survey 2021/22, Really Moving.
First time buyer funding
There is no doubt that First time buyers are an absolute essential make up of the UK property market. The fact that 53% of all home moves in July, August, and September were first time buyers is fantastic. This is the highest number in over a year!
Affordability is always going to be key. With Mortgage rates coming down again this week PLUS, inflation down to 4.6%, there is real hope of more significant drops in mortgage rates.
It’s not rocket science.
The lower the rate, the more affordable mortgages become!
The thing that stood out for us was that 27% were helped by family and friends. We thought it would be less than that!
What’s the picture in Harlow?
The Harlow Property Market has also seen an increase in enquiries from first time buyers. This is a welcome sign, and its close proximity to London makes Harlow a ‘hot bed’ for first time buyers.