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First Time Buyers Seeking Rural Properties
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Recent research from Experian indicates that aspiring homeowners are moving away from city centres and seeking properties in rural locations.
First time buyers are more likely to buy a house in the Western Isles of Scotland rather than in an exclusive area, such as Kensington and Chelsea.
Furthermore, the average age of a first time buyer has slowly risen over the last decade. Experian found that first time buyers are more often young families between the ages of 26-35-years old, than younger professionals.
This is believed to be due to families seeking a permanent residence and young professionals enjoying the flexibility of renting.
First Time Buyers Seeking Rural Properties
Affordability is also a key factor in purchasing one’s first home.
The latest data, from 2012, shows the average age of first time buyers in each region of the UK:
|
Region |
Average age of first time buyer |
| North West | 35 |
| North East | 35 |
| Yorkshire & the Humber | 36 |
| East Midlands | 35 |
| West Midlands | 38 |
| East of England | 43 |
| London | 52 |
| South East | 45 |
| South West | 48 |
These shocking statistics reveal that the average first time buyer in the capital is 52-years-old. This is considerably higher than other parts of the country, despite the youngest first time buyer still being 35-years-old.
London’s first time buyers must therefore wait longer until they have saved enough for a deposit and can securely purchase a property.
But London is still out of reach for so many. A report in 2014 states: “On the best measure of affordability, a standard property in London is half as affordable as it was in 1997 and not a lot more affordable than at the worst point in 2007.”1
An example of affordability pressures in the capital is emphasised by this property comparison: A two-bedroom home in Kensington and Chelsea is on the market on Rightmove for £3.1m. A three-bedroom house on the Scottish border is on the market for £182,500.
In this instance, a first time buyer could save a massive £2,917,500 by looking further afield.
Richard Jenkins, a senior consultant at Experian, comments: “The population in British cities has clearly dramatically altered in recent times. With central areas now dominated by a combination of the very well off and a new generation of young renters.”1
Londoners are quite aware of the dramatic house prices in the city. But it is still a desirable location of accessible amenities. Property developers take advantage of this fact and make a considerable profit out of those that struggle to live in the capital.
It is a known fact that more homes need to be built, but a levelling of prices across all UK regions would also make housing more affordable for all buyers. First time buyers should have the flexibility of living either in a city or in a rural spot.
The amount of private renters in the country will continue to rise if prices do not come down, meaning more aspiring homeowners pushed out of the market.
1 http://www.todaysconveyancer.co.uk/first-time-buyers-moving-further-afield-cms-15391
