FIRST TIME BUYERS AT THE HIGHEST LEVEL FOR 10 YEARS

There were 365,000 first time buyers who bought homes in 2017 according to newly released data from UK finance, this is 7.7% more than in 2016 and the highest level since 2006. 

Building steadily over the last few years, the number buying homes for the first time was just 3% below the number of existing owners who moved during the year. Ten years ago, the number of first time buyers was 40% lower than home movers.

Some of this boost for first time buyers can be attributed to the governments help to buy scheme, we calculate that around 9% of homes bought by first time buyers in England have used finance from the scheme, in addition to the governments’ incentives, low interest rates and the weaker activity from investors has also assisted new buyers.

The Stamp duty break further provides a boost this year and it is possible that the number of first time buyers will exceed home movers for the first time.