According to the latest figures from the Office for National Statistics, first time buyers are now paying an average of £202,000 – an 11 per cent jump from the previous year. With this in mind, it is more important than ever for first time buyers to protect their investment.
Despite rising costs, the housing market continues to expand. First time homeowners now comprise almost half of the 2014 home purchase market thanks to the Help to Buy scheme, increasing by a quarter in the last year.
However, a recent Paymentshield survey revealed that 34 per cent have no contents insurance, 81 per cent are without mortgage payment protection, and 96 per cent have no income protection – illustrating the need for education on these products for first time buyers.
It is important for buyers to also remember that purchasing a house is the single largest investment an individual will make in their lifetime. As first time buyers are usually young people, without access to these large sums it is important to ensure that their investment is comprehensively covered. By protecting a house and mortgage against every eventuality, homeowners can be safe in the knowledge that regardless of the future and what it might bring, their largest investment is secure.
With both prices and the number of first time buyers looking likely to continue rising, at least until the end of the Help to Buy scheme in 2016, there is a real opportunity for advisers. By communicating to first-time buyers the importance of protection when purchasing their first home, advisers can help dispel the lingering disillusionment with insurance among younger customers.
