Age of First-Time Buyers Increasing

A new government survey has found that the age at which people are buying their first home has increased in the last 20 years and it now stands at 33 - compared to 30 in 1994/95.

The English Housing Survey, compiled by the Department of Communities and Local Government, highlighted that 61% of first-time buyers in 2014/15 were between 25 and 34 years of age, which was a similar figure to 20 years ago. However, what has altered is that the proportion of those buyers who were aged from 16 to 24 dropped to 10% from 23% ,and those in the 35 to 44 category rose to 20% from 11%.

More Buying as a Couple

This report also showed that more of these first-time buyers were part of a couple, as opposed to single-person households, in comparison to the figure from 20 years ago. In 1994/95 the figure for single first-time buyers was 29%, but this fell by half to 14% for 2014/15. This means that 80% were couples, which is a significant increase from the 63% in 1994/95 and the 62% ten years ago.

The analysis in the report indicated that these factors are due to the need to have two incomes to buy properties in many areas across the country, which is resulting in people buying later and as part of a couple.

Higher Incomes and More Families

More of the first-time buyers now have higher incomes than they did 20 years ago, and an increasing number have dependent children, which is changing the styles of properties they are buying. They now require family homes rather than small starter homes or apartments, often with added features such as a conservatory or iron balcony.

The proportion of first-time buyers who had dependent children increased to 31% from 20%, and 72% are now in the fourth or fifth quintile income bands, compared to 62% 20 years ago.

There are still issues around affordability in the housing market and, as this report points out, it is those with higher incomes who have more of a chance to own their own home. As prices rise further and higher deposits are required to secure a mortgage, there have to be more innovative solutions to enable a greater percentage of people to get on the housing ladder and create a property sector that works for the future needs of the country.