UK First-Time Buyers Are in the Best Position to Purchase Property in Decades, Data Reveals
For the first time since 2012, UK first-time buyers are finding themselves at their most favorable point to purchase property, according to data from Halifax. With record-high prices reaching £299,892 in November, a slight month-on-month increase, affordability has improved significantly compared to average incomes.
Experts attribute this improvement to lenders easing criteria and reducing mortgage rates, which is making it easier for those ready to proceed with their purchases now that the budget has been released. Mark Harris, CEO of mortgage broker SPF Private Clients, believes that "affordability is improving as lenders ease criteria and reduce rates," putting first-time buyers in a stronger position.
Halifax's data shows that despite slower annual growth of 0.7%, down from 1.9% in October, the current market conditions are most favorable for first-time buyers since late 2015. When property prices are compared to average incomes, affordability is now at its strongest since this time period.
The lender notes a "clear north-south divide" in property prices, with falls in London and the south-east, but rises in other areas such as Scotland and the north-west of England. Northern Ireland continues to have the strongest growth, with prices up almost 9%.
According to Amy Reynolds, head of sales at Antony Roberts, estate agency, "The post-budget bounce is real," with increased demand for properties seen across all offices. The newly announced "mansion tax" has also been deemed unlikely to have a significant impact on the housing market.
As interest rates continue to be high at 4.85% according to Moneyfacts, mortgage costs as a share of income are at their lowest level in about three years. With expectations of further rate reductions, Halifax anticipates property prices will continue to grow gradually into 2026.
For the first time since 2012, UK first-time buyers are finding themselves at their most favorable point to purchase property, according to data from Halifax. With record-high prices reaching £299,892 in November, a slight month-on-month increase, affordability has improved significantly compared to average incomes.
Experts attribute this improvement to lenders easing criteria and reducing mortgage rates, which is making it easier for those ready to proceed with their purchases now that the budget has been released. Mark Harris, CEO of mortgage broker SPF Private Clients, believes that "affordability is improving as lenders ease criteria and reduce rates," putting first-time buyers in a stronger position.
Halifax's data shows that despite slower annual growth of 0.7%, down from 1.9% in October, the current market conditions are most favorable for first-time buyers since late 2015. When property prices are compared to average incomes, affordability is now at its strongest since this time period.
The lender notes a "clear north-south divide" in property prices, with falls in London and the south-east, but rises in other areas such as Scotland and the north-west of England. Northern Ireland continues to have the strongest growth, with prices up almost 9%.
According to Amy Reynolds, head of sales at Antony Roberts, estate agency, "The post-budget bounce is real," with increased demand for properties seen across all offices. The newly announced "mansion tax" has also been deemed unlikely to have a significant impact on the housing market.
As interest rates continue to be high at 4.85% according to Moneyfacts, mortgage costs as a share of income are at their lowest level in about three years. With expectations of further rate reductions, Halifax anticipates property prices will continue to grow gradually into 2026.
! The fact that lenders are making it easier for them to get a mortgage and with interest rates being high, it's like they're getting a free pass 
. I mean, £299,892 is still a pretty big chunk of change but if people can afford it, why not? And it's not just the prices, the north-south divide thing is wild 
. Scotland and the north-west are seeing some major growth which is awesome for those areas. Only time will tell if this trend keeps up though 
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they're actually in the best position to get a mortgage since 2012! 
lenders are making it easier for them to get a foot in the door, and with interest rates dropping, it's like a dream come true 
. northern ireland is on fire though, prices up 9%?! that's crazy growth 
Scotland and north-west england also seeing rises, so maybe we'll see some cool regeneration happening there soon? 
. I mean, record-high prices can be a double-edged sword, right? Sure, lenders are making it easier for them to get a mortgage, but what about the overall cost of living? £299,892 is a pretty steep price tag, and not everyone's going to be able to afford that 
. Plus, I'm seeing all these 'affordable' apartments being built in areas with decent transport links, but are they really affordable for those who don't have cars or can't afford the daily commute? Not sure about this one...
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and yeah, maybe prices are lower in some areas, but what about all the other costs like council tax and maintenance? don't those add up? 
also, i don't know about this "north-south divide" thing... isn't that just gonna lead to more inequality? 
. affordability has been a major issue for first-time buyers in the UK for far too long. now that lenders are easing criteria and rates are coming down, it's creating a perfect storm for them to make their move 
I mean, if lenders are easing criteria and reducing rates, doesn't that sound like a recipe for disaster? 
How much exactly are first-time buyers able to afford now? Is it really as strong as the experts say? 
. And that mansion tax thing? Not gonna make a difference, I mean we all know its just another way to squeeze more cash out of us. Anyway, interest rates might be high but mortgage costs as a share of income are at their lowest in ages so Im gonna take advantage while I can