In recent times, there has been a lot of focus on the increasing average age of first-time buyers. This cannot be seen as a shock or surprise. When you think about the size of the deposit required to buy a home these days, it is perfectly understandable people will need to wait for longer before having the necessary funds to buy a home.
However, there is some positive news for younger people looking to step on the property ladder. Data contained in the English Housing Survey, issued by the Government suggests that after a decade of decline, the proportion of 25 to 34-year olds who own property has increased. The data indicates the ratio of this age group who own their property and who live in rental property is now equal, at 41%.
There is help for first-time buyers
While there are many concerns surrounding how first-time buyers will afford to step on the property ladder; the statistics indicate that more and more buyers are managing the process. Some of the factors which have influenced the ability to buy a home include the Help To Buy scheme, mortgage rates being at a low level, and supportive family members.
A lot is said about The Bank of Mum and Dad, and how many people wish they were supported in this manner by their parents. The property market has changed considerably in one or two generations. The market circumstances that first-time buyers faced in the previous millennium are incredibly different from the challenges buyers face today.
First-time buyers make significant sacrifices to step on the property ladder
It should also be noted many first-time buyers make substantial sacrifices to squeeze their way on to the property ladder. There has been a spate of articles advising younger property buyers to make coffee at home as opposed to buying on the way to work, and how cutting back on the consumption of avocados will enable them to save for a deposit. These articles are not the most helpful, perhaps a more positive atmosphere regarding saving for a deposit and developing a healthy approach to saving would be of benefit for first-time buyers, and the property market as a whole.
First-time buyers are the largest group of buyers in the property market. Therefore, if this demographic is doing well, it is good news for the industry as a whole. This means vendors also benefit as if there are no willing buyers, it becomes complicated for vendors to sell their home and move on.
No matter what you hope to achieve in the housing market in 2020, we can help. If you want to step on to the property ladder, we are happy to advise you. If you intend to sell your house this year, we can arrange a property valuation.