The housing market may be picking up pace, but first-time buyers are waiting longer than ever to get on the property ladder
When you’re house hunting it can be tricky to find a property in the perfect location and at the right price. And now a new study reveals that you could be competing with up to 10 people to buy that dream home.
According to new research for Countrywide‘s quarterly housing market review (Q4 2013), on average 9.7 buyers were chasing every new property coming on to the market in November 2013 – compared to 6.5 in November 2008.
Another key finding was that 60% of first-time buyers are now aged between 25 and 34 years of age – and in 2013, the average first-time buyer in England paid a £39,000 deposit.
The deposit required by a first-time buyer has doubled every six years since the mid-1980s – and this trend is likely to continue.
‘We expect the proportion of buyers aged between 25 and 44 to grow to encompass 87% of all first-time buyers by 2023, up from 67% in 2003,’ says Grenville Turner, Chief Executive, Countrywide plc.
Positive trends that should make life a little easier for would-be buyers include the recovery in mortgage lending, low interest rates and lower deposit requirement due to high loan-to-value lending.
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And homeowners who plan to move house this year will be pleased to hear that Countrywide plc expects to see double-digit growth in the number of home movers in 2014 as a result of first-time buyers returning to the market.
‘The natural flow of first-time buyers into the market will help second and third-time buyers move up the housing ladder,’ says Grenville Turner.
‘We predict 5% growth in house prices in 2014.’
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