Research from My Home Move, the UK’s leading provider of mover conveyancing services, has revealed that the number of first-time buyers and buyers of investment properties has fallen in the last two years.
First-time buyers accounted for seven per cent of clients using a Gifted Deposits (June 2016-July 2017), a decrease of 4.5 per cent compared to the same period in 2014/2015. Similarly, Gifted Deposits used by investors fell by 2.5 per cent, accounting for 4.1 per cent of all transactions.
Commenting on the findings, CEO of My Home Move Doug Crawford said: “What is particularly interesting is the drop in Gifted Deposits to first-time buyers. We know that affordability is a key issue for first-time buyers, particularly as 55 per cent of them are looking to buy properties costing less than £150,000, which gives them roughly a one per cent chance of finding a suitable property.
“With gifts to this group falling steadily, it does beg the questions as to whether this is reflective of a drop in the number of first-time buyers entering the market, or whether there are other factors in play.”
In comparison, overall use of Gifted Deposits decreased by just four per cent in the same time period, indicating that those already on the housing ladder are in need of additional funding to purchase their next property. 88.9 per cent of all those purchasing using a Gifted Deposit were second-steppers or middle-movers, an increase of 8.7 per cent between 2014 and 2017.