The Midlands is more affordable than many other counties. On average, people who wish to buy a home in this area need to save four times less than people in London, according to the research from Halifax.
In the West Midlands, a homebuyer will need to save £22,753 to purchase their first home, whereas in London would be over £90,000 on average. Halifax calculated that approximately 310,000 people got a mortgage last year, dropping by 0.5 per cent from the 2014 figure.
The sales director Bobby Singh of Love Your Postcode advises, “There a certain pockets in Birmingham where it is still feasible to buy on a deposit of less than £15,000 but even these areas and properties types are seeing the strongest price increases and greatest demand.”
This is the first time in four years that the number of first-time buyers declines. There are two reasons that might explain this fact. The first one is the shortage of homes for buyers to choose from and the second, as a consequence of the first one, is that the prices of homes increased by 10% and also the usual deposit required, a 13% (£3,833) higher than in 2014.
In 2014, the average deposit for first-time homebuyers in UK was £29,094 and in 2015 it went up to £32,927. This was a 17% deposit. The average home price in the country according to Halifax reached £190,180, but in West Midlands this figure was more reduced, as first-time buyers paid £147,554 on average.
Another interesting fact is that more and more people are taking on a mortgage that extends over 35 years their borrowing time. The traditional mortgage is for 25 years. In 2007 only a 16% of first buyers took on a 35-year mortgage to get on the property ladder, but in 2015 the number has increased by 26%.
In spite of the slight fall in the quantity of first-time buyers last year, the number is still two-thirds bigger that the one of 2011 when 193,700 people decided to start on the property ladder.
Although the prices of homes were a 10 % more expensive than in 2014, there were other favourable economic conditions, such as more employment, higher salaries and, especially, low mortgage rates.
If you require free expert advice on buying a home in Birmingham and surrounding areas, please do not hesitate in calling us on 0800 862 0870 or visiting our head office at 1 Colmore Row, Birmingham City Centre B3 2BJ (just next to Snow Hill Train Station).
Source: Sutton Coldfield Observer