New analysis from Yorkshire Building Society has revealed that 2018 saw a record number of first-time buyer mortgage approvals.
Despite rising house prices in the UK, mortgage approvals reached their highest level in a decade, with 362,800 more people taking out their first mortgage in 2018 compared to 2017.
In 2018, 367,038 first-time buyers took out a mortgage. By comparison, 193,300 benefits were awarded after the 2008 financial crisis.
Nitesh Patel, strategic economist at Yorkshire Building Society, said: “Over the past 12 years property prices have been rising faster than wages, creating challenges for first-time buyers.”
“While a variety of factors are helping to alleviate this difficult environment, the market remains quite challenging for those wanting to become homeowners.”
“However, the figures show that government initiatives such as stamp duty relief, Share Loan Help to Buy and Help to Buy ISAs may have had an impact. “We have also seen mortgage rates fall due to increased competition, with more mortgage lenders offering loan-to-value mortgages,” he added.
“A combination of these factors has made buying a home more accessible in recent years, but for many young people it is still not affordable, as more people are receiving help from their mom and dad’s banks. It’s still not easy to get on the ladder.”
“Despite these challenges, the first-time buyer market recovered after the financial crisis and outperformed other sectors such as the home mover and buy-to-let markets.”
“Buying a first home remains difficult for many people. It is encouraging to see first-time buyer levels at a 10-year high and rising further.”
