Difference between salary and purchase prices widen but developers' initiatives keep first time buyer rates high
First-time buyers in London could expect to spend 13 times their earnings on property compared to just 5.5 times in the North East.
New Office of National Statistic figures released this week show that while affordability is still a major issue for first time buyers, 2017 saw the largest number of first time buyer mortgages since 2006.
The peak has been enabled by initiatives such as Help to Buy and stamp duty support. One home builder, Countryside, is offering £2000 to any family members who help their relative with a deposit.
The developers recognise that many home buyers turn to their family to help raise a deposit so started its ‘Bank of Mum and Dad’ scheme. In appreciation of their generosity, on completion of the sale Countryside will gift £2,000 back to the parent or family member who provided the deposit.
At Countryside’s South Oxhey site in Watford, 35% of buyers have used the Bank of Mum and Dad Scheme.
Andrew Loveday, Group Sales and Marketing Director, Countryside said: “Affordability continues to be an issue for our first-time buyers so we try to do all we can to make the huge buying commitment easier.
“Our Bank of Mum and Dad offer is extremely popular with our customers.”