Number of first-time buyers at its highest level since the financial crisis of 2007

THE number of people who took their first step on the property ladder last year is estimated to have been the highest levels since 2007.

Across the UK, there were 353,436 first-time buyers in 2019, slightly up from the 353,130 recorded in 2018 and the highest annual total since 357,590 in 2007, according to Yorkshire Building Society.

But there is still some way to go before first-time buyer numbers reach 2006 levels, when the annual total stood at 400,870.

The society used industry-wide mortgage data from trade association UK Finance up to October 2019 and estimates for November and

December 2019 to calculate the total number of first-time buyers last year.

Nearly twice as many first-time buyers secured a mortgage in 2019 as at the start of the financial crisis in 2008 (191,040), with those entering the property market now accounting for more than half (51 per cent) of homes purchased with a mortgage. In 2008 this share was just 38%.

Yorkshire Building Society strategic economist Nitesh Patel said: “Even though the number of first-time buyers has stayed pretty much the same as last year, it is still encouraging to see first-time buyers top 350,000 for the second year in a row. They also represent over half of all homes bought with a mortgage, meaning the first-time buyer mortgage market share is at its highest since 1995, when they bought 53% of all mortgage-financed homes.”

He continued: “In recent years firsttime buyers have been helped by strong competition driving mortgage rates down to near-record lows, making borrowing more accessible.

“Also government schemes such as stamp duty relief, Help to Buy equity loans and Help to Buy Isas will have made an impact. This combination of factors has made buying a home more accessible in recent years.

“This has seen the first-time buyer market bounce back from the financial crisis and perform better than other sectors, such as the homemoving and buy-to-let markets.

“However, as these figures show, the market may have now reached its peak and buying your first home still remains tough for many.”

Yorkshire Building Society offered some personal tips for first-time buyers when making the decision to purchase a home.

Firstly, it advised first-time buyers to review their personal finances before looking at properties, adding if they are concerned about current monthly outgoings, try to reduce these at least six months before making a mortgage application.

Also, buyers are urged to appear on the electoral roll for their current address and to check any records of loans and credit cards.

Consider speaking to a mortgage adviser or broker, who will look at the buyer’s income, debts and deposit to make an assessment on how much you can borrow. They will also help explain how a mortgage works and the things needed to consider before buying your first home.

Finally, when choosing where to live, make a list of what is important. Consider the number of bedrooms, parking and outdoor space – and whether location is more important than the property.