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A majority of individuals who are purchasing their first home are doing so in partnership with someone else, as reported by a leading mortgage lender.
According to Halifax, nearly two-thirds of mortgages acquired by first-time home buyers from January to December 2023 were in partnership with two or more individuals.
According to Halifax, the average cost of a property for those buying their first home is currently 6.7 times the average salary in the UK, which is £43,257.
The analysis utilized its own data and also data from Lloyds Bank and Bank of Scotland, all of which belong to the same banking group.
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“In 2023, the decrease in house prices will assist individuals in getting onto the property ladder for the first time.”
According to data from UK Finance, Lloyds Banking Group was the largest mortgage lender in the UK in 2022, providing a total of £52.7bn in loans throughout the year.
According to a study by Halifax, individuals purchasing a home for the first time in the previous year typically made a deposit of £53,414, which is approximately £21,000 more than the amount that was typical ten years ago.
In the UK, the typical cost for a first-time homebuyer in 2023 was £288,136, a slight decrease from £302,008 in 2022.
In the previous year, 30% of new mortgages for first-time buyers were for terraced homes, 27% were for flats, and 10% were for detached homes.
According to Halifax, in the year 2023, semi-detached homes comprised 29% of the properties purchased by first-time buyers, while bungalows made up 3%.
The bank stated that flats have become more popular as a first home in comparison to ten years ago, while the percentage of first-time buyers selecting a terraced home has decreased.
In 2013, terraced homes accounted for 37% of first-time buyer purchases and flats accounted for 21%.
According to Halifax, the average age of first-time home buyers last year was 32. However, this varied from 27 in Ribble Valley, Lancashire to 37 in Slough, Berkshire.
Director of Halifax Mortgages, Kim Kinnaird, stated that the decrease in house prices in 2023 will assist first-time home buyers. However, these individuals still rely on a consistent availability of affordable properties while also dealing with the ongoing challenge of saving for a deposit amidst high rental and living expenses.
According to Halifax, Scotland offers many affordable options for first-time home buyers.
According to the data, Inverclyde was found to be the most cost-effective area, where homes are priced at approximately 2.6 times the average yearly income of £41,598.
On the opposite side of the spectrum, London remains home to some of the most unaffordable locations in the country for purchasing a first home. First-time buyers in this area typically require a deposit of over £100,000.
According to the study, individuals purchasing their first home in Islington, London are met with property prices that are 10.6 times higher than the average annual salary of £57,548. This makes Islington the most unaffordable area for first-time buyers.
According to Halifax, the average prices for houses bought by first-time buyers in 2023, as well as the deposits and their percentage in relation to the purchase price, are as follows:
– East Midlands, £235,941, £36,139, 15 per cent
“In the Eastern region of England, the average house price is £327,926 with a yearly increase of £52,682, representing a 16% growth.”
– London, £492,234, £108,848, 22 per cent
The amount for the North East region is £174,693 with an additional £29,740, resulting in a total of 17 percent.
– Northern Ireland, £174,337, £31,948, 18 per cent
“The total value for the North West region is £215,655, with an average of £35,581 per unit. This represents a 16 percent increase.”
– Scotland, £188,670, £39,691, 21 per cent
– South East, £353,724, £59,075, 17 per cent
“The South West region has an average house price of £273,968, with an average annual increase of £49,135, equating to an 18% rise.”
– Wales, £199,930, £36,350, 18 per cent
The West Midlands region has an average price of £236,253 and an average annual wage of £37,459, with a 16% increase.
The region of Yorkshire and the Humber has an average income of £204,178, with a difference of £33,208 compared to the national average. This represents a 16% increase.
Source: independent.co.uk
