020 7223 3837
108 Streatham High Road, London, SW16 1BW
020 7223 3837
108 Streatham High Road, London, SW16 1BW
estate agents
020 7223 3837
108 Streatham High Road, London, SW16 1BW

At Holmes Estate Agents, we are pleased to say we have worked closely with many first-time buyers. We believe the South West area of London is a brilliant place for many first-time buyers, and this helps to keep moving in and around the capital.

Even if you are already on the property ladder, you should take comfort from knowing there are people looking to buy their first home. By having prospective buyers for your house, you have more chance of moving on.

If you are looking to make a move in 2022, rely on Holmes Estate Agents to ensure you make an informed decision in the local housing market.

What is the current state of the market for first-time buyers?

According to the Yorkshire Building Society (YBS), there were more than 400,000 first-time buyers in 2021. This is the first time this figure has been breached since the Great Financial Crisis. It is estimated there were 408,379 first-time buyer instructions in 2021. This represents a 35% increase on the 2020 figures, which stood at 303,000.

First-time buyers make up 50% of all property purchases with a mortgage. Back in 2007, these buyers only represented 36% in the overall mortgage market.

The last notable peak with respect to first-time buyers was 2002, and this year saw 531,800 step on the property ladder. In 2006, there were 400,900 first-time buyers in the market.

After the financial crisis, first-time buyer numbers were around 200,000 (between 2008 and 2012), so the current numbers are around double what they were during that challenging time.

What are key factors in the current level of demand for homes?

When it comes to understanding why there is a greater level of demand for property right now, the following factors are all prevalent:

  • Unemployment figures which are falling

  • Borrowing is affordable for many people

  • There is a strong range of affordable mortgage deals with low deposits

What is the average cost of a home for a first-time buyer?

The most recent figures, for October 2021, state the average price of a first-time buyer’s home is £222,997. This represents a 9% increase in the figure from October 2020.

Obviously, the cost in and around London is higher, but there are relatively affordable options in the South West of the capital. If you would like to discuss your options, please contact us, and we will be more than happy to help.

What do the specialists say?

Nitesh Patel, Strategic Economist at Yorkshire Building Society, said: “The performance of the first-time buyer market in 2021 has been extraordinary, particularly against the backdrop of uncertainties caused by the lockdown in the early months of the year. There are some strong drivers of demand that explain the increased volumes. Low borrowing costs is an important factor and the increased availability of more low deposit mortgages has also been an enabler mostly for first-time buyers. Unemployment has also been falling for the last year and the jobs market has been getting stronger since the phased re-opening in April.”

Nitesh concluded by saying; “Whilst first-time buyers don’t pay stamp duty on prices up to £300,000, new buyers looking to buy up to £500,000 would have benefited. In the near-term housing demand will continue to exceed supply, however with prices at an elevated level in comparison to local earnings, this should dampen activity. Therefore, it’s unlikely that we will continue to see first-time buyer numbers at this level in 2022 and beyond.”

Contact Holmes Estate Agents for all your South West London housing needs in 2022

We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.

020 7223 3837
108 Streatham High Road, London, SW16 1BW
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