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FTBs contribute to strong UK property ownership levels

4th August 2005 | back to article listings BACK    print this article PRINT

A rising number of young first time buyers (FTBs) are active in the UK property market, as the overall level of property ownership remains high.

New reports from the Office of the Deputy Prime Minister (ODPM) confirms that property ownership in the UK remains strong in 2005, with figures stating there to currently be 14.5 million homeowners nationwide. Within this number, 59 per cent are buying their homes with a mortgage, as opposed to the 41 per cent who have bought their homes outright. Overall, 26 per cent have recently paid off a mortgage and more than 50 per cent of the UK's total outstanding mortgage debt is accounted for by mortgages that were taken out since 2001.

Perhaps surprisingly, only 5.5 million homeowners are FTBs, a fact that serves as confirmation that first time buyers continue to find it difficult to get a foothold on the property ladder. Of this 5.5 million under one million (945,000) bought their property before 2000, suggesting that FTB activity has remained relatively steady over the past five years. According to figures based on the Survey of English Housing (SEH) for 2003/04 925,000 first time owners were former sitting tenants who had exercised their right-to-buy, since the introduction of the scheme in 1980.

With regard to age almost 60 per cent of FTBs were between 25 and 34 at the time of purchase, with a total of 69 per cent of recent first-time buyers under 35 years of age.

Elsewhere, the second homes market is looking fairly strong, with an estimated 298,000 households having a second home in England at the end of 2004. Spain remains the most popular destination for overseas property development investment, containing 35 per cent of all UK investors' second homes, followed by France at 24 per cent.

Over 2003/04 the number of Brits with second homes rose to a peak of almost 400,000, representing an increase of almost 25 per cent over the past decade. Traditionally, property buyers looking for additional homes have focussed their attentions upon established holiday hotspots in the nearby continent, particular France and Spain. These locations are still very much sought after and the their foreign property markets have proven consistently buoyant for many years.

In total, 56 per cent of households with second homes are in the 45-64 age group.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2076.html. Alternatively, please see our full press release archive.

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