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Two thirds of first-time buyers team up to get on the property ladder

Written by: Lana Clements
More than six in 10 first-time buyers buy with someone else to get on the ladder, analysis reveals.

It comes as rising house prices have pushed up the deposit needed to buy a home.

Someone purchasing their first home now has an average deposit of £62,470 – up 8% from 2021, according to a study by Halifax.

Wages have failed to keep pace with rising property values which are now around 7.6 times the average UK salary.

As deposits increased last year, first-time buyer numbers tumbled by 11%, compared to 2021.

However, first-time buyers made up 52% of all purchases – the highest level seen in the last 10 years.

And the numbers managing to get on the housing ladder in 2022 is higher than any previous year, other than 2006 and 2021’s record spike.

The greatest falls of first-time buyers last year were in the South East, South West, Wales and Northern Ireland.

Kim Kinnaird, mortgages director, Halifax said: “Buyers looking to make their first step onto the property ladder may welcome the forecasted fall in house prices this year – providing the supply is there.

“Nonetheless, the cost of purchasing a home is still significant and saving for a deposit can be challenging for some first-time buyers.

“The length of time needed, and cost of, raising a deposit are likely having an impact on the profile of the average first-time buyer over time.

“Today, those starting out on the housing ladder are 32 years old, on average – two years older than a decade ago – and almost two thirds of people are now getting their first mortgage in joint names.”

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