Average first-time buyer gross household income is £42k

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UK Finance has reported that there were 35,500 new first-time buyer mortgages completed in August, some 2% more than in the same month a year earlier.

The £6.1bn of new lending in the month was 5.2% more year-on-year.  The average first-time buyer is 30 and has a gross household income of £42,000.

Meanwhile, there were 38,000 new homemover mortgages completed in the month, some 2.3% fewer than in the same month a year earlier.  The £8.5bn of new lending in the month was the same year-on-year. The average homemover is 39 and has a gross household income of £57,000.

In addition, there were 37,100 new homeowner remortgages completed in the month, some 0.3% fewer than in the same month a year earlier. The £6.5bn of remortgaging in the month was the same year-on-year.

UK Finance also said there were 6,000 new buy-to-let home purchase mortgages completed in the month, some 13% fewer than in the same month a year earlier. By value this was £0.8bn of lending in the month, 20% down year-on-year.

There were 13,800 new buy-to-let remortgages completed in the month, some 4.5% more than in the same month a year earlier. By value this was £2.2bn of lending in the month, 4.8% more year-on-year.

Jackie Bennett, director of mortgages at UK Finance, said: “Overall house purchase completions remain stable, driven largely by the number of first-time buyers which reached its highest monthly level since June 2017.

“Buy-to-let remortgaging saw relatively strong growth in August, due in part to the number of two year fixed deals coming to an end. This suggests that while new purchases in the buy-to-let market continue to be impacted by recent tax and regulatory changes, many existing landlords remain committed to the market.

“However, the homeowner remortgaging market has softened slightly, reflecting the many borrowers who had already locked into attractive deals in the months preceding the Bank of England’s base rate rise.”

Simon Heawood, CEO of Bricklane.com, added: “Buy-to-let landlords have been hit by a number of reasons to sell up their properties in recent years, from increasing taxation to stronger protections for tenants. This means as many as 44% of landlords are considering selling their properties, despite many remaining attracted to the residential property market itself.

“The good news, however, is that there are now alternatives through which investors can access residential property returns, but in ways that are tax-efficient, diversified and good for tenants, without the drawbacks of direct buy-to-let.”

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