Massive rise in first time buyers’ contribution to housing market

There’s been a huge rise in the amount of money contributed to the housing market by first time buyers.

They paid over £86 billion in 2021, increasing by just over £27 billion in a single year. 

The figures come from comparison website GetAgent which has analysed data from Halifax concerning FTBs, cross-referring it with the average price paid based on Land Registry data.

This shows that across Britain some 397,232 first-time buyers entered the market in 2021, up from 295,390 in 2020. T

That’s over 100,000 more first-time buyers in a single year, with the South East seeing the largest increase at 24,416, followed by London on 18,717 and the North West with 8,698.

The average price paid for a first home also climbed from £199,251 in 2020 to £216,836 in 2021, a nine per cent increase. Reflecting the regional differences in house price growth, Wales saw the largest FTB price paid jump at 12 per cent. 

GetAgent chief executive Colby Short says of the figures: “Despite house prices climbing to record new heights during the pandemic, the number of first-time buyers entering the market has climbed significantly on an annual basis and the overall level of market value they account for is huge, to say the least.

“This greater demand has pushed the cost of buying even higher but it’s clear that the aspiration to own our own homes remains strong, even in today’s generation who have become more normalised to long term renting. 

“This bodes well where the ongoing health of the housing market, as it suggests that there is little sign of the buyer demand hopper running low anytime soon. With the level of new housing stock also failing to keep up, property values should remain buoyant, even if we do see the odd adjustment every now and then.”