First Time Buyers remain elevated in 2022

First-time buyers numbers across the UK remained above pre-pandemic levels despite a 9% year-on-year fall, new data has revealed.

It is estimated that there were 370,287 people buying their first property across 2022 by the Yorkshire Building Society, down from the 20-year high of 405,320 seen in 2021 which the building society states was fuelled by falling unemployment, stamp duty holidays, and low-cost borrowing.

Encouragingly, the 2022 figures still represent a 5% increase when compared with 2019 and remain comfortably above levels seen over the past decade.

2022’s FTBs accordingly represent 53% of all house purchases with a mortgage, up from 50% in 2021, and 41% a decade ago.

Yorkshire Building Society stated the figures “still signal strong demand for first-time buyers, even with the average price of a typical first-time buyer home rising by 10%”, adding that “prior to 2021, the last peak in first-time buyers was as far back as 2006”.

“The year started much as 2021 had ended, with the supply of a significant number of low deposit mortgages, an overflow of healthy deposits from the build-up of household savings balances during the pandemic years and a steady economic picture,” said Nitesh Patel, Strategic Economist at Yorkshire Building Society, who forecasted this year’s figures.

Patel added that, amongst other things, the mini-budget’s effect on the mortgage market coupled with the absence of a stamp duty holiday this year mean the latest forecast is “unsurprising” though “still shows that demand from first-time buyers remains strong, even with house prices being at historic highs for much of the year and the country experiencing such political and economic uncertainty”. He continued:

“The one constant in the housing market – the lack of supply at all stages of homeownership – will remain, which will help to maintain house prices. The continued uncertain landscape however, which may prevent would-be borrowers from making such a significant purchase or cause lenders to tighten affordability, could mean we’ll see a further fall in first-time buyers next year.”

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