First timers represent growing proportion of new home buyers
Developers are adapting to the needs of first time buyers who are now responsible for over 50% of all new residential mortgages issued across the UK, according to new research by Savills.
Latest figures from the real estate services provider reveal the first time buyers’ share of the market has increased by 6% from Q1 2017 to Q1 2018. 365,000 first time buyers completed on a mortgage in 2017 which was the highest number since 2006. First time buyers of Savills new homes have increased their share of the market by 4% over the last two years. This translates to 81,000 mortgages at a total value of £13.2 billion. And as the profile of first time buyers and their priorities change, the products on offer to them must adapt accordingly to remain in demand.
Speaking at Savills First Time Buyers Event, Carole Mackie, Savills head of new homes in Scotland, said: “With affordability a key issue for this growing buyer group, ensuring new homes hit the right price point and deliver the right product, in the right place, is key for developers.”
Carole Mackie added: “The larger deposits that are now required means it is now taking longer for buyers to save. However both Help to Buy and the bank of, not only Mum and Dad, but increasingly of grandparents too, mean that this group represents a greater proportion of those buying new homes.
“The first time buyer falls in to two categories: millennial young professionals are renting for longer and are very discerning about the places they want to live with a greater emphasis on being able to walk or cycle to work, access to gyms and outdoor space increasingly becoming key drivers.
“However there is a second, important category of first time buyers: many already have children by the time they buy their first home, and of course, this impacts the kind of home they are looking for. Our recent collaborative survey with the NHBC found that almost a third of first time buyers who had purchased a new home after the four years already had children and were buying a home with more than 3 bedrooms.”
Attendees included those who were considering buying their first home, as well as others who had recently bought and could talk about lessons learned from the process.
Held at Savills Glasgow, speakers provided information about what can be daunting aspects of home buying, such as applying for a mortgage and the conveyancing process, the implications of Land and Buildings Transaction Tax, accessing the Help to Buy Scheme, and indeed the pros and cons of renting versus buying. Experts were on hand to offer information and guidance.
The event was supported by Blackadders Solicitors, Taylor Carmichael, Tay Letting, the Botanist Gin, Yo Shushi and Bo Concept.