More first-time buyers aged over 50 as house prices soar

More first-time buyers aged over 50 as house prices soar

0:04 AM, 30th January 2024, About 3 months ago

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Many people are delaying their first home purchase until their 50s or beyond, as house prices have rocketed in recent years, one firm reveals.

Tembo Money, a mortgage specialist, analysed data from the Financial Conduct Authority (FCA) and found that the number of first-time buyers aged 50 or older increased by 29% between 2018 and 2022.

In contrast, the number of young people entering the property market declined, with an 8% fall in 18 to 25-year-olds and a 1% fall in 26 to 30-year-olds.

The only age groups that saw an increase in first-time buyers were those over 31, with the biggest jumps in 35 to 40-year-olds (21%) and 46 to 50-year-olds (31%).

‘Storm of factors impacting first-time-buyer affordability

Richard Dana, the chief executive of Tembo, told MailOnline: “A perfect storm of factors impacting first-time-buyer affordability means we’re now seeing a sharp rise in the number of people waiting until they’re aged 50 or above before they buy their first home.

“This is presenting a challenge to both the financial services industry and would-be homebuyers, with many traditional high street lenders not offering extended mortgage loan terms beyond the age of 75.”

Region with the highest growth in first-time buyers

London was the region with the highest growth in first-time buyers over 50, with a 63% increase over the five-year period.

It was followed by Northern Ireland (58%), the East of England (46%), and the South East (36%).

Tembo points to a combination of factors for the trend, such as longer deposit saving times, rising house prices and more mortgage options later in life.

Mr Dana added: “Our average customer has a deposit of £74,000, and if a buyer was to save £150 a month in a lifetime Isa savings account that would take about 22 years.

“There is also a growing number of mortgages that run well into retirement, meaning becoming a homeowner with a mortgage in your 60s is now entirely possible.”

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