View more on these topics

FTB numbers slump to lowest level in 23 years

The number of first-time buyers entering the property market is at its lowest level since 1981, according to The First Time Buyer Annual Review by the Halifax.

Halifax says there were 361,000 FTBs last year compared with 368,220 in 2003 and 532,000 in 2002. The Halifax total for 2004 lower than the statistics from the Council of Mortgage Lenders which show a slight rise to 369,000.

The average FTB pays over 1,300 in stamp duty, equiv-alent to 5 per cent of their deposit or nearly two-and-a-half weeks of their gross ann-ual income, says Halifax. It is campaigning for a reform of stamp duty on residential property.

The average house price paid by FTBs increased by 16 per cent to 131,024 last year from 112,541 in 2003.

The affordability difficulties are compounded by the fact that nine out of 10 UK towns are deemed unaffordable for FTBs, meaning that 548 out of 597 towns are beyond an FTB’s borrowing capacity based on average income.

The average FTB deposit nationally was 26,455 in 2004, 20 per cent of the property’s value compared with 18 per cent or 19,999 in 2003.

The report says the inc-rease in the average age of FTBs in recent years is attributable to the rise in house prices. Younger potential buyers also seem to be spending longer in higher education and entering the labour market later.

Chief economist Martin Ellis says: “Affordability has become a serious issue, making it very difficult for those looking to get on to the housing ladder for the first time. This is highlighted by the sharp decline in the number of first-time buyers over the past two years.”


Boxing clever

Financial journalists may not seem like the best at keeping secrets – unless its from their own boss. One finance hack is doing exactly that after stepping into the boxing ring last weekend. The mild-mannered scribe had no fear as he slugged it out and emerged as the champ after three rounds at London’s Hammersmith […]

Schools to teach CII Certificate

Six schools in the north of England will start teaching the Chartered Insurers Institute certificate in financial planning (one to five) from next September.

Julian Gibbs

Paul Mumford, who manages the Cavendish opportunities fund, is one of only six managers to have beaten the FTSE 100 index every year for the past five years. Furthermore, his longterm performance is outstanding, up by over 240 per cent over the past 10 years. Cavendish has now decided to launch an entirely different type […]

Harris on Mortgages

It is little wonder that there is so much confusion surrounding the future of the housing market when there are at least half a dozen indices all claiming to offer the definitive picture as to what happened to house prices the previous month.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm