2018 has shown plenty of positives for first time buyers, with December seeing nearly 31,000 successful applications, bringing the year total to 370,000. Furthermore, those newcomers to home ownership in 2018 borrowed a total of £62 billion, up 4.9% on a year earlier, so it looks like, despite some warnings, more new homeowners are getting on the property ladder.

However, analysis by the Office for National Statistics (ONS) showed the average age of first-time buyers had risen eight years over the last two decades. As a demographic, the average FTB is around 30 years old and they are borrowing on average £145,702 to get on the first rung of the housing ladder. This is thought to be a product of rising deposit costs, leaving many singles and even couples seeking other living arrangements until they have built up a large enough deposit to secure a mortgage.

While buying a home may have become more accessible, in some ways actually getting on to the housing ladder is still not an easy step for many young people. This is demonstrated by the increasing numbers who have received help from the bank of mum and dad or other means of savings to get a deposit together.

But with house prices in many rural and less popular areas being well below the national average, many are taking out mortgages for significantly smaller amounts, and that generally means a smaller deposit in the first place.

Then there is the question of market fluctuations. Undeniably, first time buyers are looking at the potential for market disruption arising from market forces – Brexit, being a major factor – and deciding that it is now the best time to buy before the potential disruption really takes hold.  And these market forces are also playing into the hands of first-time buyers by steadying a housing market that was in danger of running out of control and preventing first time buyers getting on the ladder.

On the flip side of the coin, new buy to let loans (BTL) in December 2018 totalled 5,100 at a value of £700m, which was down by 5.6% and 12.5% respectively compared to December 2017. Generally, over 2018 numbers dropped, too and there were 66,400 new BTL loans completed worth £9bn, a drop on 2017 to the tune of 11.5 per cent and 15 per cent, respectively.

Remortgages in the buy to let sector fared a little better, and there were a recorded 12,400 new BTL remortgages in December 2018, up significantly from the 9,900 seen in December 2017, at a value of £2bn, both of which represent a rise of 25% over the year. That dip in the buy-to-let sector may put a squeeze on available rental properties and force some first-time buyers in to borrowing a little more in order to get on to the property ladder.

It’s difficult to say when the best time to buy is particularly when a property has so many different facets that contribute to the overall cost, and others which may dictate how a market can change. But it’s fairly safe to say that the current financial and economic climate is pretty good for first time buyers and those looking to move from first-time buyer mortgages on to standard mortgages.

Speak to a member of our team to discuss how you can get on the property ladder or move up the property ladder.