More first-time buyers ‘targeting family homes’
MANY first-time buyers are bypassing traditional starter homes and instead targeting family-sized houses, research suggests.
Zoopla said that those taking their first step on the property ladder are typically searching for homes with three bedrooms that will suit them for longer – and are “leapfrogging” one or two-bedroom flats.
Across the UK, the trend is particularly prevalent in Wales, England’s Midlands and Northern Ireland, according to the figures.
The most popular type of home first-time buyers inquire about on Zoopla’s portal are three-bedroom houses. In Wales, this accounts for 55.9% of inquiries.
Two-thirds of first-time buyers in the UK are seeking houses and, stripping out London, this increases to 80% of inquiries, with properties averaging 2.9 bedrooms, the website said.
Those who are getting on the property ladder later in life may already have started their family – and moving costs such as stamp duty may mean they are looking for somewhere to stay put for the longer term.
The trend also means that aspiring first-time buyers face paying sums closer to the average house price in their area to secure their desired property type.
The average price of homes bought by first-time buyers outside London is now just 8% lower than their regional average, according to Zoopla research.
The gap has narrowed compared with the period between 1996 and 2007, when first-time buyers typically bought homes that were priced at 20% less than their regional average.
Richard Donnell, research and insight director at Zoopla, said: “First-time buyers are not compromising on size and price of home.
“Our analysis suggests that they are taking the long-term view and buying a home with a longer-term horizon than they may have done in the past.
“Three-bedroom homes remain the primary housing type in demand and this drops to two-bedroom homes in London where housing costs and affordability pressures are greatest.”