Number of FTBs purchasing home falls by 10.6% in 2022: Wayhome – Mortgage Strategy

Number of FTBs purchasing home falls by 10.6% in 2022: Wayhome – Mortgage Strategy

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The number of first-time buyers (FTBs) purchasing a home has fallen sharply over the last year, Wayhome reveals.

The largest annual reductions in FTB levels by region have come across Wales (-12.5%), the South East (-12.5%), Northern Ireland (-12.2%) and the South West (-12.1%).

Last year there were an estimated 362,461 FTBs, a year-on-year dip of -10.6% compared to the record levels seen in 2021.

Wayhome reveals that this is just the fourth and by far the largest annual decline to happen in the last decade.

The decline comes following a record increase in the number of FTBs purchasing during the pandemic market boom.

When the pandemic struck in 2020, FTB property purchases plummeted, with the number of those buying their first home falling to 303,980.

This marked a -13.5% annual drop, the largest annual decline between 2012 to 2022 and the third annual decline seen during the same period.

However, the introduction of the stamp duty holiday in July 2020 helped to rejuvenate the market, with the estimated number of FTBs rocketing to 405,320 in 2021, climbing 33.3%.

Wayhome says it also pushed the number of FTBs within the market far beyond any level seen since 2012.

Despite such a sharp annual reduction, Wayhome highlights that the number of FTBs in 2022 remained some way above pre-pandemic market levels and the second-highest annual level in the last decade.

Wayhome co-founder and chief executive Nigel Purves comments: “Despite the fact that the pandemic market boom pushed house prices to record highs, we saw a huge boost to the number of first-time buyers making it onto the property ladder and this was largely driven by extremely low mortgage rates, as well as the additional carrot of a stamp duty saving.”

“However, this number has declined considerably over the last year and there’s no doubt that growing market uncertainty and a consistent string of interest rate hikes has contributed to this.”

“The good news is that there are still more first-time buyers making it onto the ladder when compared to the pre-pandemic benchmark, but there are concerns this downward trend could become more prominent going forward.”

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