The number of people buying a home for the first time rose to the highest level in more than a decade in 2017, with the average first time buyer aged 30 and earning £41,000 a year.
According to figures from UK Finance, there were 365,000 first time buyers purchasing homes with a mortgage in 2017, a 7.4% increase from 2016.
Paul Smee, head of mortgages at UK Finance said: “2017 saw the number of first time buyers reach its highest level in a decade, which is welcome for those getting started on the housing ladder.”
According to the estate agency Savills, the number of first time buyers has gradually risen since 2012 thanks to government policies such as the Help to Buy equity loan scheme.
Frances Clacy, Savills’ research analyst said: “Since the credit crunch it has really been saving up for a deposit that has been the hardest thing for first time buyers.
“For those who have saved up, the cost of servicing the mortgage is actually less of an issue.”
Some property experts believe this is in part due to landlords selling London properties in search of other investments elsewhere in the country.
James Cameron, director of estate agency Vesper Homes said: “When it comes to properties costing less than £350,000 in London, once you take into account taxes, agent fees and mortgages it doesn’t make it economical for landlords to rent them as they just cover the cost.
“Landlords are therefore selling up so they can invest outside of London or trade up to a larger property which frees up the smaller ones for first time buyers.”
Despite the rise in the number of first time buyers, figures showed that mortgage lending to this demographic fell year-on-year in December.
Those within the property industry believe this is due to home buyers’ tendency to put large financial decisions on hold during the festive season.
