First-time buyer sales hit post-recession record
- July sees 29,700 first-time buyer sales – the highest number since 35,300 in August 2007 – as sales rise 4.9% month-on-month
- Buyers rush to get on the ladder ahead of a base rate rise, and before the best deals are withdrawn
- Comes despite average deposit of £27,975 – up 10% annually – consuming 72% of average yearly income
- First-time buyers are paying an average purchase price of £161,985 in July – up 8.9% year-on-year
Monthly first-time buyer sales have hit a post-recession record, according to the latest First Time Buyer Tracker from Your Move.
July saw 29,700 first-time buyers complete property transactions, the highest since August 2007, before the financial crisis struck, when it stood at 35,300. This month’s figure also represents a 28% rise on April 2015’s number (23,200) – amounting to a 6,500 increase over the last three months – as well as a 4.9% month-on-month uptick on June’s figure of 28,300.
The news comes despite the rising immediate costs of buying a home. The average first-time buyer deposit in July totalled £27,975, marking a 10% increase on July 2014’s figure of £25,429. In cash terms, this equates to a rise of £2,546. The cost of a deposit as a proportion of a first-time buyer’s average income reached 71.6% in July, surging 3.1 2 percentage points in one month alone and rising 5.4 percentage points from 66.2% a year ago.
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