First-time buyer mortgages reach 12-year high

First-time buyer mortgage figures have hit their highest levels in over a decade, Yorkshire Building Society analysis has indicated.

The Society estimates 367,038 first-time buyers secured mortgages in 2018, up from 362,800 in 2017.[i]

The Society has based its market analysis on market-wide first-time buyer data to October 2018, with November and December estimated by the Society.

The analysis indicates that the number of first-time buyer mortgages has exceeded 2007 levels, when 359,900 first-time buyers took out mortgages. It’s almost double of that in 2008 (193,300), when the financial crisis impacted the housing market, and stands just 9% lower than the pre-crisis peak of 402,800 in 2006. 

The figures suggest first-time buyer levels have continued to rise and now represent half (50%) of all homes bought with a mortgage. This signifies that the first-time buyer mortgage market share is at its highest since 1995, when 53% of all mortgage-financed homes were bought by first-time buyers.

Nitesh Patel, Yorkshire Building Society’s Strategic Economist, said: “Property prices have grown at a faster rate than wages over the past 12 years, which has created difficulties for first-time buyers.

“Various factors have helped to alleviate this challenging environment, although the market is still pretty tough for those wanting to become home owners. However, the figures indicate that Government initiatives such as Stamp Duty relief, Help to Buy equity loans and Help to Buy ISAs may have made an impact. Over the past three or four years, we’ve also seen more mortgage lenders offering 95% loan-to-value mortgages, as well as strong competition driving mortgage rates down.

“This combination of factors has made buying a home more accessible in recent years. But getting on to the housing ladder is still not an easy step for many young people, as demonstrated by the increasing numbers who have received help from the bank of Mum and Dad. Despite these challenges, the first-time buyer market has bounced back following the financial crisis to out-perform other sectors, such as the home-moving and buy-to-let markets. Buying your first home remains tough for many, but it’s encouraging to see first-time buyer levels at a 12-year high and climbing.”

Table 1 – First-time buyer figures 2008 to 2018

Year

FTB numbers

Year on Year change

Share of all mortgage financed house purchases

2008

192,300

-47%

38%

2009

196,700

2%

38%

2010

199,400

1%

37%

2011

193,700

-3%

38%

2012

217,900

12%

40%

2013

269,500

24%

44%

2014

309,100

15%

46%

2015

309,400

0%

46%

2016

337,200

9%

48%

2017

362,800

8%

49%

2018*

367,038

1%

50%

 

* Based on UK Finance data to October 2018, with November and December 2018 estimated by Yorkshire Building Society, in line with previous first-time buyer patterns. Actual figures due to be available in February 2019.

Table 2 – Annual Regional FTB numbers 2008-2018

 

North East

Yorkshire & Humber

East Midlands

East Anglia

London

South East

South West

West Midlands

North West

Wales

Scotland

Northern Ireland

 UK

2008

                    8,300

          15,800

          13,400

            6,700

          27,900

          37,300

          14,300

          16,400

          18,800

            7,700

          22,100

            2,900

        192,300

2009

                    8,100

          15,000

          13,800

            7,900

          29,800

          41,000

          16,800

          15,700

          18,500

            7,500

          17,800

            4,600

        196,700

2010

                    8,300

          15,300

          13,500

            7,200

          34,500

          39,100

          15,400

          15,700

          19,400

            8,200

          17,700

            4,700

        199,400

2011

                    8,500

          15,400

          13,000

            6,900

          32,400

          37,700

          15,100

          15,100

          19,000

            8,300

          16,700

            4,700

        193,700

2012

                    9,400

          16,900

          14,800

            7,700

          36,800

          42,400

          17,500

          17,500

          21,400

            8,700

          19,200

            5,100

        217,900

2013

                  11,400

          20,800

          18,600

            9,500

          45,400

          53,800

          21,600

          21,800

          26,000

          10,600

          23,900

            6,000

        269,500

2014

                  13,100

          24,300

          22,000

          11,200

          48,100

          63,300

          25,000

          25,100

          29,900

          12,200

          27,500

            7,400

        309,100

2015

                  13,600

          24,600

          22,600

          10,600

          44,100

          61,800

          25,100

          25,700

          30,900

          13,100

          29,600

            7,400

        309,400

2016

                  14,800

          27,600

          26,300

          12,100

          42,000

          67,800

          28,300

          29,200

          35,100

          14,700

          31,400

            8,000

        337,200

2017

                  16,700

          30,300

          28,000

          13,000

          42,600

          70,000

          30,000

          32,000

          38,700

          16,600

          35,100

            9,600

        362,800

2018*

                  17,003

          30,763

          28,483

          13,098

          43,114

          71,415

          30,329

          32,547

          39,348

          16,317

          34,265

          10,228

        367,038

* Based on UK Finance data to October 2018, with November and December 2018 estimated by Yorkshire Building Society, in line with previous first-time buyer patterns. Actual figures due to be available in February 2019. Regional breakdowns do not tally with national total due to rounding.



[i] Based on UK Finance data to October 2018, with November and December 2018 estimated in line with previous first-time buyer patterns. Actual figures due to be available in February 2019.

 

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