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First time buyers have been featured a great deal lately because they are finding
it very difficult to afford to buy a property.

Buy to let investors have been blamed for purchasing the lower end of the markets
property but in fact only 10% of the market is owned by buy to let investors.

In the 1950’s and 1960’s only 30%-40% of property was owner-occupied. In those
days houses were purchased with the intention that a family would be raised in the
house and parents would remain there throughout their lives. The trend changed
as prices went up and couples were forced to buy smaller property and move when they were more financially stable and when starting a family.

First time buyers used to account for 45%-50% of all property buyers but the 21st
century has bought a change in the market and this has gradually declined to around 30%-35% of the market.

First time buyers will continue to struggle to get on the property ladder until more
property is built a year. Once supply is on an increase and with mortgage lenders
relaxing criteria first time buyers will be again able to afford property.

31% More for First Time Buyers

First time buyer in the South of England are now paying 31% more at £128,350 than those in the North who are paying only £89,189.

Buying costs rise in South

The North – South divide at present is for first time buyers is greater than ever before. Those in the North can get a great deal more for their money than those in the South who can just about get onto the market.

People in the South in 1997 only borrowed 8% more for a house purchase than those in the North. Now ten years later those in the South have to pay 31% more than house buyers in the North.

Londoners paid 30% more than those in Liverpool or Manchester in l997 now they pay almost twice as much.

Stamp Duty up 40%

Buyers paid £6.4bn in stamp duty in 2006-2007 up 40% from the year earlier. Figures show that the level of stamp duty now paid is nearly nine times more than before 1997.

Where Do You Stand

By looking at supply and demand in the housing market it is obvious that the trend in the UK is still to become a property owner-occupier. First Time Buyer mortgages will remain important despite the number of Buy To Let Mortgages.

The present pressure caused by affordability is not likely to grow to the size of that in the 1990’s. Today there are more credit tools available and in the 1990’s bank managers were able to sign off lenders giving one of the main reasons for credit difficulties at that time.