The number of first-time buyer mortgage applications are soaring
Preston is amongst the UK’s first-time buyer hotspots(Image: Getty Images)
The latest first-time buyer hotspots have now been revealed, with a city near Greater Manchester having made the list.
Getting on the property ladder remains significantly difficult for young people in the UK due to high house prices relative to income, housing demand outweighing supply and the struggle to save for a deposit while renting.
Despite this, there are certain parts of the UK where first-time buyer properties are in high demand, with more and more people applying for mortgages in these areas.
New analysis of the latest data from the Office for National Statistics and Financial Conduct Authority by Barratt Homes has now revealed the fastest-growing first-time buyer hotspots across the UK.
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Barratt has pulled out the top 10 local authorities with the largest increase in first-time buyer mortgage applications in the last 10 years.
The largest increase can be seen in Harlow, Essex, with an 87 percent increase, followed by Knowsley, Merseyside with 82 percent.
These are followed by two different locations in Warwickshire; Stratford-on-Avon with a 74 percent increase and Nuneaton and Bedworth at 72 percent.
Preston in Lancashire is also amongst the UK towns that have seen a surge in interest from first-time buyers.
The city, which is less than an hour from Greater Manchester, has seen a 70 percent rise in mortgage applications over the last 10 years.
These are the latest first-time buyer hotspots(Image: Getty Images)
The surprising UK towns and cities leading the way for first-time buyers:
Harlow (+87%)Knowsley (+82%)Stratford-on-Avon (+74%)Nuneaton and Bedworth (+72%)Preston (+70%)Braintree (+63%)Newport (+61%)Dartford (+58%)Malvern Hills (+58%)Winchester (+57%)Broadland (+55%)
Looking at a regional level, North East England has seen the greatest increase, with the total number of applications increasing by 26%. This is followed by the East Midlands with and 24% increase and the North West with a 22% increase.
The South West and South East both saw the smallest increases in the number of applications, with 11% and 10% respectively.
London has seen the only decline in the number of applications, with this figure decreasing by 15%.
As for which regions have the greatest number of applications however, a very different picture emerges. The South East of England, in fact, leads the way with 780,000 applications since 2006, 17% of England’s total applications.
Stratford-upon-Avon is one of the UK’s latest first-time buyer hotspots(Image: Getty Images)
London follows closely with 766,000 applications, 16% of England’s total.
After this comes the North West with 603,000 applications, making up a 13% share, and the East of England with 526,000 applications, an 11% share. Both the West Midlands and South West have a 10% share in the total number of applications, 459,000, and 449,000, respectively.
Yorkshire and the Humber follows with 439,000 applications, accounting for a 9% share of the total, with the East Midlands having 392,000 applications and an 8% share.
Whilst the North East has seen the greatest increase in the number of applications, it has the smallest number of applications of any English region, trailing at 205,000 and making up only 4% of England’s total application numbers.
Total first-time mortgage applications per region:
South East England – 780,000London – 766,000North West England – 603,000East of England – 526,000Scotland – 493,000West Midlands – 459,000South West England – 449,000Yorkshire & Humber – 439,000East Midlands – 392,000Wales – 236,000North East England – 205,000
Commenting on the findings, Steve Mariner, Group Sales Director at Barratt Redrow, said: “It’s encouraging to see that more and more individuals are taking their first step into home ownership.
“Following the cuts made by the Bank of England to the UK’s interest rate this year, we’ve seen mortgage rates continue to drop, with plenty of lenders competing with more competitive, lower rates. This has helped to open up homeownership to new buyers.
“The market has seen many improvements in lending recently, giving more customers access to mortgages at higher income multiples and with less deposit.”
Steve added: “That said, our own research has found that one-in-five first-time buyers are not aware of the available schemes to help them, from the Government, new build developers, and lenders.
“At Barratt Redrow, we are continuing to put in place enhanced schemes to help first-time buyers onto the property ladder.
“For example, we’ve just extended our Key Worker Scheme, which enables anyone working for the NHS, in education, the police, fire service or for local authorities, to get up to £25,000 towards their house deposit.”
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