First-Time Buyer Numbers Rebound in 2024 from Decade Low
First-time buyer mortgage transactions in the UK surged nearly 14% in 2024, bouncing back from a decade low in 2023
First-Time Buyers, UK, Mortgage, Yorkshire Building Society, Stamp Duty
London: It looks like first-time buyers are finally getting a break! In 2024, the number of new mortgage applications jumped by almost 14%. That’s a big deal after hitting a decade low last year.
According to the Yorkshire Building Society, around 330,000 first-time buyer transactions happened in the UK this year. That’s a nice bump from 2023, which saw only 290,000 transactions—the lowest since 2013.
Last year was tough for many, with rising living costs and high interest rates making it hard to buy a home. But now, things are looking up!
Experts think the changes in stamp duty coming in April could really shake things up. The “nil rate” band for first-time buyers is dropping from £425,000 to £300,000, which might push more people to buy before the deadline.
Max Shepherd, the economist at Yorkshire, mentioned that while the market is buzzing with optimism, buyers in southern England might still feel the pinch due to high house prices.
Interestingly, 2021 was a record year for first-time buyers, with 400,000 transactions, thanks to government support and low borrowing costs. Now, with potential base rate cuts from the Bank of England, confidence is creeping back, but it’s wise to stay cautious.
Shepherd also pointed out that while the market expects some rate cuts this year, it’s unlikely we’ll see mortgage rates drop below 4%. Still, with rising wages and low unemployment, there’s a glimmer of hope for new buyers.