First-Time Buyer Behaviour Changing

7th February 2024
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If you’re selling your home, you need to know what first-time buyers are doing. These buyers fuel the housing market, creating the demand which lets existing homeowners move up the property ladder. This is why we at Anthony Jones stays in touch with what first-time buyers are doing. Trust us, even if you don’t think these buyers have anything to do with your next property move, you’ll be glad to work with someone who pays attention!

As it stands, it appears as though first-time buyer behaviour is changing, and this means homeowners looking to reach them have new things to consider.

Joint applications are on the rise

According to Halifax, nearly two-thirds (63%) of first-time buyer mortgages taken out between January and December 2023 involved joint applications, emphasizing the trend of individuals entering the housing market with someone else. This collaborative approach, often with a partner or family member, has become a common strategy for overcoming the financial challenges associated with purchasing a first home.

The research highlights that average property values for first-time buyers now stand at about 6.7 times the typical UK salary, which is £43,257. Understanding these figures is crucial for Wynyard homeowners looking to sell, as it provides insights into the financial landscape of potential buyers.

The overall dip in house prices witnessed in 2023, with the average first-time buyer property price at £288,136 (down from £302,008 in 2022), presents an opportunity for individuals to step onto the property ladder. This information is essential for those contemplating selling their properties in Wynyard, as it indicates a potential increase in the pool of first-time buyers in the market.

Examining the property types preferred by first-time buyers, Halifax's analysis shows that terraced homes constituted 30% of new mortgages, followed by flats at 27%, detached homes at 10%, semi-detached homes at 29%, and bungalows at 3%. Understanding these preferences is valuable for Wynyard homeowners looking to sell, as it provides insights into the types of properties that may attract first-time buyers.

Flats are a great option for first-time buyers

Interestingly, the data indicates a shift in preferences over the years. Flats have gained popularity as starter homes compared to a decade earlier, while the proportion of first-time buyers choosing terraced homes has declined.

Kim Kinnaird, director, Halifax Mortgages said: “The overall fall in house prices we saw in 2023 will go some way to helping people get on the ladder for the first time – but these buyers are still dependent on a steady supply of properties in their price range, while they are faced with the continued pressure of saving for a deposit, when rent and living costs are high.”

According to the Halifax, the average first-time buyer property price for 2023 was £174,693, and the average deposit was £29,740. This leaves the deposit as 17% of the total purchase price.

With respect to the deposit as a percentage of the total price, the North East sits in between either end of the market. It won’t surprise you to find first-time buyers in London have a deposit that is 22% of their total price but in the East Midlands, this figure sits at 15%.

We are here to help you move in and around Wynyard

If you are looking for help with any matter of the Wynyard property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01740 807107.


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