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(qlmbusinessnews.com Thurs, 1st Feb, 2024) London, UK —
“United Front: First-Time Buyers Join Forces Amidst Property Market Challenges”
In a bid to overcome the challenges of soaring living costs and hefty deposits, nearly two-thirds of first-time buyers in the UK are pooling resources to purchase properties together, reveals recent research by Halifax.
According to data collected from January to December 2023, 63% of first-time buyer mortgages involved two or more individuals joining forces to secure homeownership. This collaborative approach reflects the mounting pressure on aspiring homeowners to accumulate sufficient funds for deposits amidst rising rent and living expenses.
The analysis, drawing from Halifax's own data as well as information from Lloyds Bank and Bank of Scotland, sheds light on the evolving dynamics within the property market.
Coinciding with this trend, Nationwide's latest figures indicate a 0.7% month-on-month increase in the average UK house price in January, offering a glimmer of optimism for the property sector. However, prices remain marginally lower compared to the previous year, emphasizing the ongoing volatility in the market.
As the UK's largest mortgage lender in 2022, Lloyds Banking Group has witnessed a rise in joint mortgage completions, constituting 63% of first-time buyer transactions, up from 58% in 2021.
Halifax attributes this surge in joint applications to the substantial upfront deposits demanded over the past decade. The data underscores the considerable shift in deposit requirements, with first-time buyers now facing an average deposit of £53,414, a stark increase of approximately £21,000 compared to ten years ago.
Despite the dip in house prices observed in 2023, with the average first-time buyer house price falling to £288,136 from £302,008 in 2022, challenges persist. Kim Kinnaird, Director of Halifax Mortgages, highlights the ongoing struggle for prospective buyers amidst the backdrop of high living expenses and the imperative to secure affordable properties.
In this climate, the reliance on joint applications offers a viable pathway for first-time buyers, albeit contingent on a consistent supply of properties within their budgetary constraints. As the property market continues to evolve, collaborative efforts among buyers signify a pragmatic response to the prevailing challenges of homeownership.
#PropertyMarket #FirstTimeBuyers #HalifaxResearch #UKProperty #CollaborativeHomeBuying #HalifaxMortgages
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