FTB's Up.....

Sibley

More first-time buyers got onto the property ladder in 2016 than in any year since 2007, but would-be home owners now need to raise over £32,000 on average for a deposit, figures show.

The number of first-time buyers is estimated to have reached 335,750 in 2016, according to Halifax.

It is the highest figure since 359,900 in 2007, and marks the third year in a row that the number has topped 300,000.

Halifax said the number of first-time buyers in 2016 was 75% higher than a low point in 2009, but 17% below a pre-crisis peak of 402,800 in 2006.

Those buying their first property can expect to fork out over £200,000 across the UK and £400,000 in London, Halifax said.

Deposit sizes have more than doubled over the last decade. In 2006, the average first-time buyer deposit across the UK was £15,168. Now it is £32,321.

http://news.sky.com/story/first-time-house-buyers-reach-10-year-high-halifax-10726696

westernpromise

Imagine how big FTBs' deposits will have to be if property prices fell! £64,000 maybe?

GreatApe

This shows that there is no affordability problems in the majority of the regions. I am going to guess that on a percentage basis the figures are even better!

The crash cheerleaders are really going to or even have already missed the boat a second time around

BobQ

I found this very interesting. We have heard how hard a time first time buyers are having buying a house. Now it seems that the average deposit is £32K. While averages can hide the truth, my reaction is that when I first bought a house 30 years ago my deposit was £23K and with one income. So £32K seems a fairly small increase for 30 years when it most likely is funded by two incomes. Is the problem simply that people cannot be bothered to save? Or the impact of higher rents?

I accept that some will be paying well above the average but equally many will be paying less than £32K.

kinger101

GreatApe wrote: »

This shows that there is no affordability problems in the majority of the regions. I am going to guess that on a percentage basis the figures are even better!

The crash cheerleaders are really going to or even have already missed the boat a second time around

I'm not a crash cheerleader, but you're being rather bullish. Many FTBs are now talking out 30 or 35 year mortgages. And the average age of the FTB is now 30. I think a trend going forward is that people will make fewer steps up the ladder.

Of course, it's probably been explained to you many times why increases in property prices that exceed inflation benefit very few people.

Carl31

BobQ wrote: »

I found this very interesting. We have heard how hard a time first time buyers are having buying a house. Now it seems that the average deposit is £32K. While averages can hide the truth, my reaction is that when I first bought a house 30 years ago my deposit was £23K and with one income. So £32K seems a fairly small increase for 30 years when it most likely is funded by two incomes. Is the problem simply that people cannot be bothered to save? Or the impact of higher rents?

I accept that some will be paying well above the average but equally many will be paying less than $32K.

Doesnt sound like your deposit was average though, what % did you put down?

My parents bought their current house in about 1984 for about £45k, your £23K would have been over 50%, i doubt the £32k average now is 50%, more like 10%

Carl31

kinger101 wrote: »

I'm not a crash cheerleader, but you're being rather bullish. Many FTBs are now talking out 30 or 35 year mortgages. And the average age of the FTB is now 30. I think a trend going forward is that people will make fewer steps up the ladder.

Of course, it's probably been explained to you many times why increases in property prices that exceed inflation benefit very few people.

Is there any mention in that article about how many of the increases FTB used HTB?

Its all very well saying 'FTB are going up', but FTB have more assistance these days, longer mortgages, greater income multiples, help to buy etc..

I am not being critical, we bought in the summer thanks to the above

stator

GreatApe wrote: »

This shows that there is no affordability problems in the majority of the regions. I am going to guess that on a percentage basis the figures are even better!

The crash cheerleaders are really going to or even have already missed the boat a second time around

It doesn't say anything about affordability.
It's not just whether people can buy houses, but how much of their money they are spending on it and for how long.
Just because people can buy houses doesn't mean everything's ok. Lots of middle class people putting themselves in close to poverty in terms of dispossable income just to buy a house.
In the South West buying a house is impossible for a young working class person unless they inherit a huge amount.

BobQ

Carl31 wrote: »

Doesnt sound like your deposit was average though, what % did you put down?

My parents bought their current house in about 1984 for about £45k, your £23K would have been over 50%, i doubt the £32k average now is 50%, more like 10%

It as about a third, in 1988.

iantojones40

BobQ wrote: »

It as about a third, in 1988.

So only about 3-6x the size of current average deposits of 5-10% then

GreatApe

stator wrote: »

It doesn't say anything about affordability.
It's not just whether people can buy houses, but how much of their money they are spending on it and for how long.
Just because people can buy houses doesn't mean everything's ok. Lots of middle class people putting themselves in close to poverty in terms of dispossable income just to buy a house.
In the South West buying a house is impossible for a young working class person unless they inherit a huge amount.

In much of the country the mortgage in real terms is now far cheaper than it was 10 years ago

For instance prices are still lower now in nominal terms in the NE than they were 10 years ago however mortgage rates are now 1.5% rather than 5.5%

Also we are still close to peak ownership levels, sure it is not 70% ownership its now closer to 65% but there are possible good reasons for that too. For instence no one expects the millions of immigrants that have arrived in the uk over the last decade for 70% of them to buy a home as soon as they step foot in the UK. If 70% or fewer of them buy that will drag the numbers down and I suspect less than 10% of them buy straight away. So we had old English folk who were owners die, their kids who inherited the house then let it to the 4 million new polish and other EU migrants.