he Number of buyers in the UK Those who got their first home after applying for a mortgage in 2023 fell to their lowest level in a decade. This data comes from yorkshire Building Society, They appear as evidence of the unaffordability of real estate, which is affected by interest rate increases and rising prices.
In total, the lender estimated that 2023 had approx 290,000 first home buyers, This is a significant decrease compared to the 370,000 registered in 2022, and the lowest number since 2013, when these reached 260,000 buyers.
First-time buyers represent 54% of the total
The numbers are far from it Records Like the one in 2021, when they arrived 400000 After the epidemic. However, Yorkshire highlighted that the decline in the number of people buying their first home is less significant than that recorded in the number of new buyers overall. This means that the proportion of first-time buyers is slightly higher than the rest of the buyers in general, with a 54% of the total.
This appears to be due to the need of those who are determined to invest in Private house To overcome problems such as high financing costs or high interest rates. Despite this, the stringent requirements of lenders make it increasingly difficult to obtain a Mortgage loan.
Inputs are up to 105% of annual salary
Currently, 20% entry means for Britons 105% of your annual salary While the mortgage includes installments of 38% of the total monthly salary, which is much higher than the recommended percentage of 30%. However, it seems that positive expectations remain for buyers, as experts believe that… Bank of England Interest rates will begin to be cut this year.
Before last Christmas, you could already find five-year fixed rate loans less than 4%, The first since May 2023, agents believe these reductions may increase. Especially considering the traditional spring shopping season in the UK, which makes banks and credit institutions compete for more customers.
“Subtly charming bacon junkie. Infuriatingly humble beer trailblazer. Introvert. Evil reader. Hipster-friendly creator.”