| It is often said that the first time buyer is the | | | | The great housing market boom may have slowed |
| lifeblood of the housing market. They buy the houses | | | | down, but the average Joe on the average salary still |
| at the bottom of the housing ladder, allowing | | | | can’t afford to buy the average house unless |
| previous owners to buy at the next level up and so | | | | he has a huge deposit. |
| on. Without first time buyers, the housing market | | | | One statistic that parents and young adults alike |
| would slow down dramatically – a process | | | | might find mind-blowing is that the average age of |
| which according to many commentators is starting to | | | | the first time buyer in the UK has increased from 27 |
| happen. In fact, figures quoted by Rightmove | | | | to 34 in the last 30 years (according to the GE |
| suggest that during August, the average house price | | | | Money Home Lending and Customer Research |
| in London actually fell by 0.1%, and the rest of the | | | | Organisation). The research also shows that the |
| UK saw growth of only 0.6% - the fourth month in a | | | | number of first time buyers buying with a spouse has |
| row that house prices have increased by less than | | | | decreased from 80% in 1977 to just a third today. |
| 1%. In theory, this could mean a light at the end of | | | | This means that the prospect of leaving home and |
| the tunnel for the first time buyer as at this rate, it | | | | moving into that ‘party pad’ remains a |
| won’t be too long before house price | | | | dream for many. |
| increases are aligned to the average salary increase | | | | With so many people getting well into their careers |
| of 3-4%. However, it’s not all great news for | | | | before buying their first place, there are more and |
| first timers as this still means that the average house | | | | more people either choosing or being forced to live in |
| price in the UK is running at over £240,000. It | | | | house shares throughout their early working lives. In |
| might take a sustained period of rime before those | | | | fact for many graduates, who are in often also |
| that have re-mortgaged are willing to sell at prices | | | | burdened by student loans the reality is that they will |
| that first time buyers can afford to kick start the | | | | still be living in student house shares well into their |
| market again. | | | | thirties! |
| What does this mean to the first time buyer then? | | | | |