Who Is the Average First-Time Buyer?

New research has shown that first-time buyers are getting older and expecting more from their first property. Gone are the days when a one-bedroom flat would be sufficient. Younger buyers today are increasingly looking at small homes for their first property, some featuring glass balcony balustrades.

The survey commissioned by LSL Property Services showed that in February there was a 42% year-on-year rise in the number of first-time buyers, with 22,400 purchasing their first property compared with 15,800 at the same time last year. The housing market has needed to attract more of these first-time buyers in order to get transactions towards the bottom end moving once again.

The Average Buyer

There might have been a rise in the number of first-time purchasers, but the average age when someone buys their first home is increasing. Respondents to the survey had an average age of 31 and were earning ?36,330. However, within the capital and the South East these figures were slightly higher; with an average age of 33 and an income of ?41,885. These figures highlight the differences in house prices across the country, with buyers in these areas needing to save for longer to be able to afford a deposit.

Recent figures for the housing sector have shown that the average price of a property is rising on a regular basis. This factor has been noted by first-time buyers and 50% of those who were surveyed anticipate that property prices will increase over the next year. 9% of them believe there will be over a 10% rise, with just 5% predicting a decline in the market.

Rising Expectations

In the past, many first-time buyers were satisfied with a small flat or starter home as their initial property. If they were in the city, this might feature a balcony with glass balcony balustrades. However, today?s first-time purchasers are expecting a bit more from their new home. This could be because they are older and want to start on the next rung of the ladder. Of those that took part in the survey, two-thirds would prefer to purchase a house rather than a flat. Almost 50% wanted a house with at least three bedrooms and 25% were searching for a two-bedroom property.

Financing a First Property

With rising house prices, first-time buyers are finding it increasingly difficult to secure that initial home. In London the average price they paid for their first property was ?280,477, with the South East (?191,242) and the South West (?169,672) following close behind. The cheapest location for a first home was Northern Ireland, where buyers paid an average of ?91,583. This could be why many need financial help to get on the property ladder. Recent research from HSBC found that 64% of first-time buyers in 2012 got money from their parents.

First-time buyers are an important feature of the housing market. They are chain-free and their purchases enable existing homeowners to finance a move up the ladder to a larger property.