It’s thought that around £5 billion is being held up in the deposits of first-time buyers who have decided to delay until the pandemic is over.
Mortgage lenders have tightened their purse strings over the past few months, partly to cope with increased demand since the housing market opened up again, partly to guard against the ongoing economic uncertainty — but this is playing havoc with the plans of first-time buyers.
Before the coronavirus pandemic, first-time buyers were the most significant sector of the property market and accounted for more than half of homes purchased with a mortgage, with over 350,000 people in the UK buying their first home in 2019.
With the cost of buying a first home in the UK now £241,000, the national average deposit of £47,000 equates to around 20 per cent of the purchase price.
By Meghann Murdock, please read the full article on Homes & Property.