The average age of a first time buyer has been increasing steadily since the 1960s and new research from Post Office Mortgages has revealed that 35 is the average age that a prospective homebuyer now expects to be before joining the property ladder.
The research tracked the average age of first time buyers since 1960, finding that those who bought their first home in the early 1960s were on average just 23 years old – significantly lower than today’s expected average age of 35. Women who do not yet own a property are slightly more optimistic than men, expecting to buy a home at 34, compared to the male expected average of 37 years old.
However, first time buyers with Post Office Mortgages are just 30 years old on average, suggesting that some people may be able to afford to buy a home sooner than they think.
Over half (53 per cent) of would-be buyers aged 25-34 don’t think they will ever be able to afford to buy a property. Half (50 per cent) of prospective homeowners aged 25-34 said they can’t afford the deposit for a home unless their circumstances change, such as receiving a lump sum of money or getting a better paid job.
On a regional basis, would-be buyers living in London are having the most difficulty when it comes to raising a deposit, with high prices in the capital likely to be standing in their way. 43 per cent of Londoners said they couldn’t afford the deposit without a change in their circumstances such as receiving a lump sum from family. This compares to the national average of 37 per cent.
Potential buyers in the West Midlands buck the overall trend – just 22 per cent of people in this region said raising the deposit is the main barrier. However, 32 per cent of people in this region cited unaffordable mortgage repayments, compared to 12 per cent nationally.
Post Office head of mortgages, Mike Cook, said “Many would-be first time buyers may have been put off trying to get onto the housing ladder by the size of deposits now needed. And some may be deterred by their perception of high mortgage repayments. But there are very competitive options available for people who are keen to own their first home and prospective buyers may not have to wait until they are 35 to take this step, with first time buyers with the Post Office averaging 30 years old. In fact, so far this year, four in 10 of our customers were first time buyers, demonstrating that it’s possible for many to get on the ladder sooner than expected.
“The Post Office now offers a range of products which only require a 10 per cent deposit, which will help people get on the all-important first rung.”
In June this year, the Post Office cut the rates across many of its fixed rate, tracker, and buy to let mortgages, and introduced a new range of fee assisted products. Many of the rate reductions were significant for the higher loan to value (LTV) products, which is good news for first time buyers.
