Two thirds of first-time buyers get property in joint names, says mortgage giant

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Nearly two-thirds of folks taking their first step on the property ladder are doing so with another person, in line with a mortgage lending giant.

Some 63% of first-time purchaser mortgages taken out between January and December 2023 have been in joint names, involving two or extra folks, Halifax discovered.

Average property values for first-time buyers at the moment are about 6.7 occasions the standard UK wage (£43,257), Halifax stated.

Its evaluation was primarily based by itself information in addition to that for Lloyds Bank and Bank of Scotland, that are all half of the identical banking group.

Lloyds Banking Group was the UK’s largest mortgage lender in 2022, lending £52.7bn throughout the 12 months, in line with figures from commerce affiliation UK Finance.

First-time buyers put a mean deposit of £53,414 down final 12 months – round £21,000 greater than a decade earlier, in line with the evaluation by Halifax.

Across the UK, the common first-time purchaser home value in 2023 was £288,136, barely down from £302,008 in 2022.

Terraced properties made up 30 per cent of new mortgages for first-time buyers final 12 months, whereas flats accounted for 27 per cent and indifferent properties accounted for 10 per cent.

Semi-detached properties made up 29 per cent of first-time purchaser properties in 2023, whereas bungalows accounted for 3 per cent, Halifax stated.

Flats have elevated in recognition as a starter residence in contrast with a decade earlier, whereas the proportion of first-time buyers selecting a terraced residence has fallen, the financial institution added.

Back in 2013, 37 per cent of first-time purchaser purchases have been for terraced properties and 21 per cent have been for residences.

The common first-time purchaser final 12 months was aged 32, however this ranged from 27 in the Ribble Valley in Lancashire to 37 in Slough, Berkshire, Halifax stated.

Kim Kinnaird, director, Halifax Mortgages stated: “The overall fall in house prices we saw in 2023 will go some way to helping people get on the ladder for the first time – but these buyers are still dependent on a steady supply of properties in their price range, while they are faced with the continued pressure of saving for a deposit, when rent and living costs are high.”

Many of probably the most inexpensive locations to purchase a primary residence are in Scotland, Halifax stated.

Inverclyde was recognized as probably the most inexpensive location, with properties costing about 2.6 occasions the common wage (£41,598).

At the opposite finish of the dimensions, London continues to host some of the least inexpensive locations in the nation to arrange a primary residence, with first-time buyers usually needing to discover a deposit of greater than £100,000.

First-time buyers in Islington in London, face property values at 10.6 occasions the common wage (£57,548), making it the least inexpensive location for folks getting on the property ladder in the analysis.

Here are common first-time purchaser home costs, deposits and deposits as a proportion of the acquisition value in 2023, in line with Halifax:

– East Midlands, £235,941, £36,139, 15 per cent

– East of England, £327,926, £52,682, 16 per cent

– London, £492,234, £108,848, 22 per cent

– North East, £174,693, £29,740, 17 per cent

– Northern Ireland, £174,337, £31,948, 18 per cent

– North West, £215,655, £35,581, 16 per cent

– Scotland, £188,670, £39,691, 21 per cent

– South East, £353,724, £59,075, 17 per cent

– South West, £273,968, £49,135, 18 per cent

– Wales, £199,930, £36,350, 18 per cent

– West Midlands, £236,253, £37,459, 16 per cent

– Yorkshire and the Humber, £204,178, £33,208, 16 per cent