First-time buyers in decline

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by Kay Murchie

Figures from the Home Sale Network (HSN) show that the number of first-time buyers in the UK property market is falling.

Their research shows first-time buyers made up for around 14% of the market in the first quarter of this year. This is down from 17% in the same period last year.

However, the organisation which represents 750 independent estate agents, said there has been an increase in the amount of first-time buyers clubbing together with friends and relatives in order to get on to the property ladder.

David Panksaid, a HSN member from Leeds, said buyers are having to find new ways to get the necessary funds together to get on to the property ladder, whether that’s buying with their partner, a group of friends or a family member.

Approximately 81% of first-time buyers share the cost of a property with a partner, while 14% have clubbed together with family members in order to acquire their first home. 5% have purchased with friends.

In related news, the Government has announced a new scheme which will help first-time buyers and key workers to get onto the property ladder.

There will be £1,500 grants to help qualifying buyers with costs such as legal fees and furniture. Over £3 million has been allocated for the grants enough to help 2,000 people.

The grants will be offered to buyers who participate in the Government’s Open Market Homebuy scheme (OMHB) and those who qualify include social tenants, key workers and some first-time buyers.

Under the scheme, qualifying buyers take out a mortgage for a percentage of their home and then another loan, known as a shared equity loan, from the Government and lenders to pay for the balance.