First-time buyer mortgage sales in Islington were at their lowest level since 2018, new figures show.
By Sonja Tutty, Data Reporter
First-time buyer mortgage sales in Islington were at their lowest level since 2018, new figures show.
Estate agents’ body NAEA Propertymark said the Government must support more people buying their first homes as many struggle with high deposits and are buying properties later in life.
Office for National Statistics analysis of data from the Financial Conduct Authority shows 835 first-time buyer mortgage sales were recorded in Islington in 2023, the most recent year with available figures.
It is the lowest figure since 2018 when there were 812 sales to first-time homeowners.
First-time buyer sales across the UK fell to their lowest since 2013, at 282,000. These figures exclude cash buyers.
The analysis shows first-time buyers are looking beyond London to get on the property ladder with 13% of first-time mortgages taken out for homes located in the region – down from 17% a decade earlier.
Toby Leek, president of NAEA Propertymark, said: “Many first-time buyers are being priced out of cities, especially throughout London where they have grown up or have a desire to nest themselves.
“This is spurring on aspiring buyers to relocate to more affordable areas of the country.
“Alongside this, other factors will continue to make it increasingly difficult for those looking to step onto the property ladder for the first time moving forward.”
He highlighted issues around high deposits and people getting on the property ladder later in life.
Mr Leek continued: “To combat this, the UK Government and the devolved administrations need to implement support mechanisms to enable more people to buy their first home well into the future, as well as continue in their missions of building new homes for a growing population, as an undersupply of properties will push up house prices even further.”
Separate ONS figures show the average first-time buyer sale – including cash buyers – in Islington increased 28% since 2013, at £618,953 in December 2023.
Richard Donnell, executive director at Zoopla, added: “Higher house prices, higher mortgage rates and the impact of mortgage regulations have compounded the problems for those buying their first home in southern England.
He said: “This has exacerbated pressures in the rental market pushing rents higher.
“There is a case to ease mortgage regulations and help more first-time buyers access housing and reduce the pressure on the rental market.”
While first-time buyer sales fell in the UK, they made up a greater proportion of total residential property sales in 2023 (38%) than they did 10 years before (28%).
This was the same in Islington, with first-time buyers making up 49% of sales in 2023 – an increase from 41% in 2013.
A Ministry for Housing, Communities and Local Government spokesperson said: “We have inherited a serious housing crisis which has made the dream of homeownership feel like a distant reality for so many.
“That’s why we are taking decisive action to deliver 1.5 million homes as part of our Plan for Change, and we have recently set out plans to launch a comprehensive mortgage guarantee scheme that will open the door to homeownership for more young families and hardworking renters.”
