"Whilst price growth in the overall housing market has been modest in recent years, the level of inflation facing first-time buyers is greater"
London saw the biggest monetary increase in the price paid by first-time buyers over the last 12 months, up by 7% to £27,764.
The greatest percentage growth came in the North West and Yorkshire and Humber, both up by 9% (£13,475 and £13,132 respectively). The smallest increase came in East Anglia, up by just £4,528 (2%).
Conversely, average deposits for first-time buyers in London were up by just 2% from £107,869 to £109,885. Other areas of the country saw more rapid growth though, with average first-time buyer deposits growing by 13% in the North from £21,263 to £24,091. East Anglia was the only region to record a fall in the average first-time buyer deposit, down by 4% (£1,640) from £44,828 to £43,188.
Despite increasing costs, the overall number of first time buyers in 2019 remained stable, up around 1% from 353,130 in 2018 to 356,767 in 2019. This means that first-time buyers continue to account for more than half of all home purchases.
Northern Ireland saw the biggest increase in the number of first-time buyers in percentage terms, up by 6% year-on-year to 11,013. London remained broadly stable, with numbers up 2% (40,960 to 41,712). The South West was the only region to record a fall, down 4% from 29,430 to 28,378.
Russell Galley, Managing Director, Halifax, said: “Whilst price growth in the overall housing market has been modest in recent years, the level of inflation facing first-time buyers is greater, which compounds the challenge in raising bigger deposits.
“However, given their importance to the market as a whole, it’s reassuring that the overall number of new buyers getting on the ladder remains stable.
“This is in part explained by initiatives designed specifically to support this key group, including Help to Buy schemes and family support mortgages, and they also benefit from the continued period of record low interest rates. However, it’s clear that more needs to be done to address more fundamental long-term issues, not least the shortage of new, affordable homes being built.”
