325,000 first time buyers get on the housing ladder in 2014

Halifax report increased number of first time buyers

The Halifax has released data to show that the number of first time buyers had increased over the last 12 months to levels not seen since 2007. The data showed that over 325,000 first time buyers moved last year which was an increase of 22% on the previous 12 months. According to the Halifax the main reason for the increase was put down to cheap mortgages and the help to buy scheme which enables borrowers to buy a home with a 5% deposit.

The recovery in the economy along with better jobs prospects has also helped. Buyers are also worried that they will miss out if they do not get on the housing ladder before p[prices go up further. Let's face it we all have to live somewhere and the cost of renting a home has become vastly inflated leaving many of us with very little choice but to buy a home.

It is unlikely that the cost of renting a home is likely to come down and so to some people it has never been a better time to purchase a property. Even though house prices continued to rise over the last 12 months buying a home has become cheaper with the costs of borrowing also coming down.

Borrowers now hope to see their wages rise as the economy picks up and this can already e seen with borrowers spending less of their income on housing compared to 12 months ago. Borrowers currently spend around a third of their income on housing compared to 50% of their salaries back in 2007. For many borrowers now is a great time to buy if you can afford to.

The "Help To Buy Scheme" will be withdrawn in future taking with it the opportunity for many buyers to buy a home. Buyers are aware of this and don't want to miss out. The government intervention in the housing market over the last couple of years has been unprecedented and is unlikely to be repeated in the future.