First-time buyers looking beyond London to get on property ladder
First-time buyers are looking beyond London to get on the property ladder, with the south east of England being the top location for first-time buyer mortgages in 2023.
In 2023, 12.7% of first-time buyer mortgages were taken out for homes located in London, down from 16.8% a decade earlier, the Office for National Statistics (ONS) said.
The south east of England had the highest proportion of first-time buyer mortgages in the UK in 2023, at 13.8% according to the report.
The report said: “Many local authorities outside of London have seen a marked increase in sales of first-time buyer mortgages since 2013.
“In 2023, the three areas with the highest rates of first-time buyer mortgages in the UK were Dartford in the South East (20.2 sales per 1,000 dwellings), Harlow in the east of England, (16.3 per 1,000) and Nuneaton and Bedworth in the West Midlands (15.5 per 1,000).”
In Scotland, Wales and Northern Ireland, areas with the fastest growth in first-time buyer mortgages over the decade to 2023 have often been outside major cities, the report said.
The areas with the highest growth in the rate of first-time buyer mortgages in Scotland, were identified as South Lanarkshire, North and South Ayrshire, West Dunbartonshire and Renfrewshire, with metropolitan areas such as Dundee City, Glasgow City and the City of Edinburgh seeing slower growth.
The report continued: “While Aberdeen City had the highest rate of first-time buyer mortgages in Scotland in 2013 (15.6 per 1,000), since then it fell to 10.8 per 1,000 in 2023. By 2023 the City of Edinburgh had the highest rate of first-time buyer mortgages, at 13.1 per 1,000 dwellings.”
In Wales, most areas saw growth in first-time buyer mortgage sales the report said, with the strongest growth being seen in Newport and Torfaen.
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The report added: “While Cardiff had the highest rate of first-time buyer mortgages in 2013 (9.7 per 1,000 dwellings), it grew more slowly over the following decade (8.6%) to 10.6 per 1,000.”
The report also highlighted strong growth rates in first-time buyer mortgages in Northern Ireland, in locations such as Belfast, Antrim and Newtownabbey.
The Government has been looking at various ways to slash red tape, including making it easier to kick-start property developments.
As part of the initiative, the Financial Conduct Authority (FCA) will launch a consultation, proposing early ideas to simplify mortgage rules.
Toby Leek, president of estate agents’ body NAEA (National Association of Estate Agents) Propertymark, said: “Many first-time buyers are being priced out of cities, especially throughout London where they have grown up or have a desire to nest themselves.
“This is spurring on aspiring buyers to relocate to more affordable areas of the country.
“Alongside this, other factors will continue to make it increasingly difficult for those looking to step onto the property ladder for the first time moving forward.”
He highlighted issues around high deposits and people getting on the property ladder later in life.
Mr Leek continued: “To combat this, the UK Government and the devolved administrations need to implement support mechanisms to enable more people to buy their first home well into the future, as well as continue in their missions of building new homes for a growing population, as an undersupply of properties will push up house prices even further.”
Simon Gerrard, chairman of Martyn Gerrard Estate Agents, said: “The lack of available housing, enabled by the long-term planning rules that have made building almost impossible, has rendered property ownership unaffordable for far too many.”
Data used in the ONS article, which was taken from the Financial Conduct Authority (FCA), related specifically to first-time buyer mortgage sales and not cash buyers.
