The number of first-time buyers wanting to get their foot on the property ladder has reached a 12-year high in the latest report from UK Finance.
In the new study, they have revealed that during 2018 the number of first-time buyers applying for mortgages reached 370,000 — 1.9 per cent more than the previous year. This is the highest number of first-time buyers since 2006, when 402,800 mortgages were completed.
It also reveals that £62 billion of new lending in 2018 was up by 4.9 per cent in comparison to 2017.
With government incentives such as Help to Buy lending a hand to the new generation of homeowners, more buyers were able to purchase their first home without the hefty deposit.
Elsewhere, the study also reveals that there were 5,100 new buy-to-let home purchase mortgages completed in December, which has fallen by 5.6 per cent on the same month of the previous year.
‘The mortgage industry helped 370,000 people buy their first home in 2018, the highest number in 12 years, as competitive deals and Government schemes such as Help to Buy continue to boost the market,’ explains Jackie Bennett, the Director of Mortgages at UK Finance to Landlord News.
‘Homeowner remortgaging also saw strong growth, driven by customers locking into attractive rates, a trend we expect to continue in 2019, as more fixed rate mortgages come to an end.
‘Demand for new buy-to-let purchases continues to be dampened by recent tax and regulatory changes. However, the number of buy-to-let remortgages reached a record high of almost 170,000 last year, suggesting many landlords remain committed to the market.’
Planning to buy your first home this year? With house prices rising just £714 in a year, now could be the time.
Source: House Beautiful