People waiting until 30 to buy first home

| April 13, 2012
People waiting until 30 to buy first home

The average age of a first time buyer in the UK has increased to 30 according to research by Clydesdale and Yorkshire Banks.

In the face of large mortgage deposits, a shortage of affordable housing and pressure on personal incomes, many potential house buyers have to wait longer before they can afford to take their first step on the property ladder.

However the situation varies across the UK, with Yorkshire having the youngest first-time buyers, with an average age of 28, while the average age in Wales has now reached 36.

The high cost of properties in south east England means that the typical first time buyer is 34 when they buy their first home.

There is a similar picture in London, where the typical first time buyer is 33.

People living in Scotland and the south west of England are likely to buy their first house at the national average of 30.

Last year, industry experts warned that the average age of a first-time buyer could reach 40 by the end of the decade unless the number of new homes built reaches 300,000 annually.

The shortage of affordable housing has led to the launch of the Government-backed FirstBuy scheme, which is designed to make home ownership more affordable by providing low deposit mortgages.

Since the credit crunch lender are demanding deposits of up to 20 per cent on home loans, putting them out of reach of many prospective house purchasers.

Through FirstBuy, the government and housebuilders together will offer first-time buyers a 20 per cent equity loan.

The buyer must find a five per cent deposit, enabling them to take out a 75 per cent mortgage on the rest of the property.

One hundred housebuilders are making their new-build homes available under the scheme, which is expected to help over 10,000 first-time buyers in England over a two-year period.

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