First-time buyers squeezed out as deposit costs rise
- May sees 22,200 first-time buyer (FTB) transactions as sales drop 18.1% compared to 27,100 last year
- This makes May 2015 the lowest May for first-time buyer transactions in three years
- Average first-time buyer deposit climbs 4.2% year-on-year to £25,134 as purchase prices rise
- Comes despite rock bottom average mortgage rates and repayments falling as a proportion of income
This year (2015) witnessed the lowest May for first-time buyer completions in three years as the election temporarily stalled the market and deposits costs climbed, according to the latest First-Time Buyer Tracker from Your Move.
The number of first-time buyers completing property transactions in May has fallen by over 18% compared to the same time last year. There were 22,000 transactions in May 2015, 18.1% lower than May 2014’s figure of 27,100.
May’s figure is 0.9% lower than April’s figure of 22,400 first-time buyer completions. May did see significantly more sales than three months ago (+16.2%), but February’s figure of 19,100 represents a seasonally quiet time of year.