According to real estate expert Nick Millican, with inflation increasing and wages staying the same, many people’s dream of owning a home is now an unattainable luxury. First-time buyers in London went down 23% by August of 2023.
New statistics show that in the same period in the year 2022, there were 32,110 homes sold to first-time buyers. However, in the same period in 2023, just 24,323 homes were sold to first-time home buyers and this is a current housing trend. According to real estate expert Nick Millican, the age of first-time homebuyers has risen to 32 years old.
The real estate agent thinks the reason for this change is that it is now more difficult to save the deposit necessary to purchase a home. Nick Millican informs how the average deposit needed to purchase a home is £113,078. This may seem ideal because it is £9,922 less than needed in 20222.
This, due to fluctuating property prices, but mortgage rates have risen. Rising prices for homes make it difficult for prospective homebuyers to raise a deposit. High house prices, the need for a deposit, high interest, and mortgage rates make it difficult for first-buyers to afford a home (Facebook).
London is one of the most unattainable places for first-time homebuyers to purchase a home. Scotland is one of the most affordable places to buy a home. Affordable homes in other locations are one of the reasons that some Londoners have opted to move. According to Nick Millican, more affordable homes also mean a smaller deposit. Giving prospective buyers a chance to reach the dream of home ownership.