Number of first-time buyers on the up

THE number of first-time buyers surpassed 400,000 for the first time since 2002 last year, according to a report from the Yorkshire Building Society.

Estimates suggest that the number of first-time buyer transactions reached 408,379 during 2021, which is 35 per cent more than in 2020.

Furthermore, first-time buyers now represent 50 per cent of all house purchases with a mortgage, compared to 36 per cent in 2007.

Falling unemployment, low borrowing costs and an increased number of low deposit mortgage deals are the key drivers of current demand.

First-time buyers have been able to increase the size of their deposits because of the stamp duty holiday and deposit sizes have increased due to the drop in expenditure during lockdowns.