First Time Buyers... Who are they?
Since the Government Housing White Paper was released in March of this year, there has been an ever growing interest in the ‘first time buyer’ and who they are and what they look like as a demographic.
The white paper said that housing across the UK is becoming less affordable for those not already on the property ladder and that the average house costs 8 times more than average earnings. They made the comparison between the baby boomers, half of which statistically owned their own home by the age of 30 and the millennials of which only a quarter are predicted to own their own home by the age of 30.
However a recent survey by Zoopla found that the number of first time buyers has grown over the past five years. First time buyers of new and existing homes accounted for an estimated 36% of all housing sales in the UK in 2016 compared to 26% in 2011.
So what do first time buyers look like?
Average age - 32
Working Full Time - 90%
75% are joint owners
66% are in the two highest income bands
What are they buying?
Across the UK the average price paid by a first time buyer is £212k
However in the Midlands most first time buyers expect to find a property more around the £165k mark
Most first time homes are semi-detached 2-3 beds
38% say they’d prefer a new build, 26% an existing property, the others have no preference
What makes them buy?
Making a mark on their own place is the key reason
Moving out of rented accommodation to live in the first home of their own
Getting married and/or having children can often be the final spark
The rental market however doesn’t seem perturbed by the increase in first time buyers and remains buoyant throughout the Alfreton and Ripley areas. Between June and August approximately 200 properties were let in the DE55 and DE5 postcodes.
Although some first time buyers may feel that renting limits their ability to save, it is still a vital alternative for some people for a variety of reasons. Many in the millennial generation may decide to rent to gain independence from their family home, they may need to move to a new area and rent while they get themselves settled or they may just prefer the security of renting and the knowledge that bills for a new boiler or a leaky tap will be met by the landlord.