First-time buyer numbers have been boosted by a raft of government measures to help people get on to the property ladder. These range from stamp duty exemptions, to top-up cash for people saving for a deposit through the Help to Buy ISA, to the Government lending buyers a deposit through the Help to Buy equity loan scheme. But while these measures have been successful in assisting people in the purchase of their first home, recent strong house price gains have made affordability become increasingly stretched. The significant slowdown in the rate at which first-time buyer numbers increased in 2018 suggests affordability constraints may be beginning to bite despite these schemes. 

Who does it affect?

Unsurprisingly, affordability is most stretched in southern regions which have seen the strongest house price growth. The typical first-time buyer property in Greater London cost £426,857 last year, while in the South East first homes averaged £279,349, leading to deposits of £52,136 being put down. Starter homes in East Anglia and the South West also broke through the £200,000 barrier, costing £210,874 and £210,200 respectively. Oxford was the most expensive place outside of London, with a house price to earnings ratio of 10.9.