First-time buyer average age on the up

Would-be buyers forced to save for longer before making a purchase

The average age of first-time buyers is continuing to increase, according to research from mform.

While during 2007 as many as 50 per cent of first-time buyers were under 30-years-of-age this has now fallen to just 34.5 per cent, according to the mortgage analysts.

The principal cause of the change is the tightening of lending criteria by mortgage providers, resulting in would-be buyers being forced to save for longer before making a purchase.

The extent of the current situation as seen by mform.co.uk is demonstrated by changes in the average loan-to-values (LTV) and average income multiples.

In 2007, lenders allowed average LTVs of
85 per cent, compared with 77 per cent this year.

Furthermore, income multiples have fallen from 3.44 times income in 2007 to just over three times now, as a result, first-time buyers now need average incomes of £41,600, compared with £34,000, last year despite recent house price falls.

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