According to mortgage lender Halifax, nearly two-thirds of first-time buyers in 2023 did not buy their property in their sole name.
The lender found that 63% of first-time buyer mortgage completions were in joint names. The average deposit put down was £53,414, which accounts for 19% of the purchase price.
During a challenging financial year, only 37% of first-time buyers purchased on their own. Some 53% of purchases in the year were first-time buyers, which is the highest percentage since 1995.
The number of first-time buyers was 293,339, down 21% from 2022. The largest falls in first-time buyer numbers were in East Anglia and the south east of England.
Deposits up
First-time buyers are now having to put aside more than a year’s average pay for the deposit for their first home. The figure of £53,414 is up £21,000 on the figure ten years previously. This goes some way to explaining why so many purchases are currently being made in joint names.
Most popular home choice for first-time buyers
The Halifax research also found that the most popular home choice for first-time buyers was a terraced property, which accounted for 30% of the mortgages given. This is still down 7% on the figure ten years previously.
Flats are more popular than ten years ago, with 6% more first time buyers choosing a flat.
Regional variations
Overall, average property prices are £288,136, down 5% from the highest point in 2022. The current figure is 86% higher than ten years ago, ie. over £132,000 more.
Unsurprisingly, several areas in and around London are the least affordable for home buyers, while Scotland has some of the most affordable. Homes in Islington are 10.6 times the average local salary of £57,548.
Properties in Inverclyde were just 2.6 times the average salary there of £51, 598.
Help for first-time buyers
The government offers a range of options that aim to make home ownership more affordable, including:
- A Lifetime ISA, where the government will contribute 25% of the amount deposited each year, up to a maximum of £1,000
- Shared ownership, where you buy part of the property and rent the other part, with the option to increase your share of ownership over time
- The First Homes scheme, which offers newbuild homes at a 30-50% discount to local first-time buyers and key workers
- The mortgage guarantee scheme, available until the end of June 2025, allowing you to buy a property with a 5% deposit. The government guarantees the portion of your loan that is over 80%, meaning that a wider range of lenders are prepared to offer a 95% mortgage
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