2021 is likely to be a challenging year in many aspects, including the housing market.
However, there are some causes for optimism. The number of first-time buyer transactions increased in the second half of 2020, and there is hope that this will continue in 2021.
If you are looking to make your first move into the housing market, we are more than happy to assist you, so get in touch.
Average purchase price
The average price paid for property from a first-time buyer in the UK was £256,057, a rise of more than £22,000 from the 2019 figure, £233,118. This was a rise of 10%.
In London, the average property price paid by a first-time buyer rose by £33,486, moving from £455,611 to £489,098. This was a rise of 7%.
Average deposit paid
In 2020, the average deposit put down by a first-time buyer was £52,278. This is a sharp increase on the 2019 figure, which was £46,499. In the space of a year, the average deposit from a first-time buyer increased by £10,829, a rise of 23%.
As you would expect, the largest average deposit for first-time buyers came in London. In 2019, the average deposit was £110,145 but in 2020, this rose to £130,357. This is a rise of 18%, so not the largest proportional rise, but it was increase of more than £20,000.
The average age of a first-time buyer in the UK is now 31, just one year older than it was a decade ago (30 in 2010).
Back in 2010, the average age of first-time buyers in the UK was 30, so there hasn’t been much of a change in this aspect.
Russell Galley, Managing Director, Halifax, said: “Whilst these figures confirm the almost inevitable fall in the overall number of first-time buyers in 2020 – with the entire housing market effectively shuttered during the first national lockdown – they also underline just how strong the bounce-back was in the second half of the year.”
Russell continued by saying; “Despite the obvious challenges presented by soaring house prices, not least the need to raise an even bigger deposit, first-time buyers still accounted for half of all home purchases, a reassuring statistic given their overall importance to the market.”
Russell concluded by saying; “However, with the economic impact of the pandemic likely to be felt most keenly by the young and those in lower-paid jobs, the need to prioritise improved housing availability and affordability for all those looking to make that first step onto the property ladder becomes ever greater.”
In line with Government guidelines, our Royston branch is open and is staffed with sales and lettings personnel. If you have any queries or need advice on property sales and lettings then please call 01763 245121 or email email@example.com.