The number of UK first-time buyers dropped by 11 per cent in 2022, according to new data from Halifax, as the average deposit required soared to almost £62,500.
Overall, 362,461 buyers made it on to the housing ladder last year, with the year-on-year fall following a record level seen in 2021.
In 2022, the average cost of a home for a first-time buyer rose 13 per cent to £302,010, with average deposits now 21 per cent of purchase price.
This means on average a first-time buyer needs to raise £62,470 for a deposit in order to buy a home, 8 per cent more than in 2021.
In 2021, the ‘race for space’, built up demand during the pandemic and the stamp duty holiday, led to a record number of buyers getting the keys to their first home.
The 2022 fist-time buyer figure remained above pre-pandemic levels and was the highest figure since 2016.
However, Halifax’s data did reveal that buying a home is becoming less affordable. It said that almost two thirds (63 per cent) of mortgage completions are now in joint names, with two or more people.
This may be due to deposit and mortgage affordability constraints, which remain the biggest barrier to first-time buyers owning their own property.
Source of data and images: dailymail