The number of first-time buyers has doubled over the last year whilst the price of an average starter home has dropped by £10k
Barclays has released new data that shows that the number of buyers purchasing their first home increased by 98% in 2021. According to the new data first-time buyers paid an average price of £281,900 for a property in 2021, which is down on 2020’s figure of £294,500. This figure is still 13% higher than pre-pandemic prices however. The data, which comes from market research, will boost positivity among prospective first-time buyers, but it’s important to note that the research also showed that 56% of the buyers had only been able to purchase their property with help from family and, furthermore, had been saving for many years. Most had started saving at the age of 24 and the average age at completion was 32. The data revealed a high level of despondency among potential first-time buyers – almost two thirds of those surveyed believed they would never get on the property ladder. Claire Macphail, mortgage expert at Barclays, said “It’s encouraging to see that first-time buyers have been able to get onto the property ladder in increasing numbers since the start of the pandemic. “However, despite numbers nearly doubling across the last year, it’s worrying to hear that many still believe that they’ll never be able to afford their first property.” She added: “Our index points to the importance of first-time buyers being supported by family so it’s essential for lenders to innovate to provide new ways in which first-time buyers can get a head start.”
