According to the Barclays Mortgages’ First Time Buyer Index, FTBs paid an average $368,180 in 2021 to get onto the property ladder, a decrease of $16,509 compared to 2020
The number of first-time-buyers (FTBs) across the UK doubled in 2021, as volumes increased 98% compared to 2020, according to Barclays Mortgages’ First Time Buyer Index.
According to the index, FTBs paid an average £281,000 ($368,180) in 2021 to get onto the property ladder, a decrease of £12,600 ($16,509) compared to 2020, though this figure was more than the 2019 figure (£249,700).
Nearly two thirds, or 64%, revealed they thought they would never get on to the property ladder, while 64% revealed they would have struggled to obtain funds without support from family.
The average income of a solo FTB rose to £50,800 ($66,560) over the year, according to the data, up from £50,300 ($65,905) in 2020 and £45,900 ($60,140) in 2019.
It is encouraging to see that first time buyers have been able to get onto the property ladder in increasing numbers since the start of the pandemic, says Barclays mortgage expert, Claire MacPhail. However, despite numbers nearly doubling across the last year, it’s worrying to hear that many still believe that they’ll never be able to afford their first property.
Our index points to the importance of first time buyers being supported by family so it’s essential for lenders to innovate to provide new ways in which first time buyers can get a head start, she said.
The average deposit paid by a sole FTB last year was £61,100 ($80,056), a significant reduction from the year before, which was up at £71,400 ($93,551).
For joint buyers it was £61,000 ($79,925), a slight decrease from the 2020 figure, which was up at £71,400 ($93,551).
The lender also pointed to a lack of consumer knowledge in the space, with 55% of prospective or existing FTBs revealing they did not know how to start the process of buying their first property.
