Extract from Redwood Financial’s Property Review November 2019
Numbers of people buying their first home reached a monthly high in August, achieving a level not seen since 2007, before the financial crisis.
The average first-time purchaser borrowed £175,361 or around 80% of the property value. The amount borrowed equates to a multiple of 3.52 of first-time buyers’ income, but with continuing low interest rates, this only represents 17.1% of total household income.
These strong figures for first-time buyers are backed by research from Zoopla which shows that over a third (36%) of all property purchases in 2018 were by first-time buyers. Reasons given include Stamp Duty relief, the Help to Buy scheme and Help to Buy ISA.