UK: First-time buyers overtake home movers for the first time since ‘95

According to Lloyds Bank’s ‘homeowner review’, there is greater mortgage activity among first-time buyers than home movers for the first time since 1995.

The report shows a 3% annual increase in first-time buyers compared to a 1% annual drop in households that moved home from the first half of 2017 to the same period in 2018. It also reveals that the average price paid by home movers has increased substantially, by 35% within the past five years, which could contribute to this trend.

In addition to this, Andrew Mason, Mortgage Products Director at Lloyds Bank, states that the increase in first time buyers and decrease in home movers could be down to the “Help to Buy scheme enabling first-time buyers to purchase a new property, combined with the low availability of the ‘right type’ of homes for those looking to move up the housing ladder.”

RFi Group data indicates that government schemes are likely to have played a role in driving first-time buyer numbers, with the proportion of recent first-time buyers (borrower who took out their mortgage in the last 12 months) that used the Help to Buy equity loan scheme for their current mortgage almost doubling over 12 months, from 11% in the second quarter of 2017, to 20% in the second quarter of 2018.

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