Rise in over 50’s buying first homes
The number of first-time buyers (FTBs) over the age of 50 has grown by over 30% in the past five years. In other age groups the proportion of those aged 30 and under is in decline.
Stretched first-time buyer affordability means that we are seeing more people waiting. Indeed waiting until they are over 50 to buy their first home.
London currently has the lowest proportion of first-time buyers over 50. However, it is growing at the fastest pace, with total purchases from over 50’s growing 64% between 2018 to 2022.
Over 40s are set to make up a quarter of first-time buyer transactions by 2030. The number of over 50’s will account for 5%. Source: #Dataloft (https://inform.dataloft.co.uk/), Tembo, FCA 2018 to 2022
Rise in over 50’s buying first homes
Amazingly, It means some people are signing up for their first mortgage at the same age their parents or grandparents may have finished paying theirs off.
There is a stark difference across the UK with the stats for the Rise in over 50’s buying first homes.
Compare the smallest growth area which is the South West at 6% with the largest, London at a whopping 64%!
Why has there been such a massive rise over the last 5 years?
These figures are for 2018, 2019, 2020, 2021 & 2022. Therefore, two normal years (2018 & 2019) followed by 3 years of lockdowns etc.
The situation is caused by soaring property inflation with separate figures showing prices rocketed all over the country during the same period, in some areas by over a quarter. It means buyers are taking far longer to save a deposit than previous generations, say experts. Mortgage specialist Tembo, which produced the report using Financial Conduct Authority sales data, says the trend is also driven by the growing availability of home loan deals aimed at the middle-aged.
What has happened in Harlow?
In Harlow, the rise in over 50’s buying their first home sits at 47%.