First time buyer
Encyclopedia
A first-time buyer is a term used in the British and Irish property markets, and in other countries, for a potential house buyer who has not previously owned a property
.
A first-time buyer is usually desirable to a seller as they do not have to sell a property, and as such will not involve a housing chain
.
There are many factors a first-time buyer will need to consider before purchasing their first property, such as how much they will be able to borrow, how much they can afford to pay each month, how much initial cash they will need for stamp duty, solicitor
s fees and a deposit, which sort of mortgage
they should use and how they should repay it.
In the United Kingdom
and Ireland
, home ownership is seen as a natural step in the life cycle and the natural form of property tenure. Ireland has one of the highest proportions of owner-occupier
s in the EU at around 80%.
In the UK in the 1980s almost half of all mortgages were taken out by first-time buyers, but this has now declined to only about 15%.. In Ireland
, FTB's represent 34% of the market.
In recent years the number of new buyers purchasing property has declined, with FTBs being "priced out of the market" by ever increasing house prices.
In the 2007 Scottish parliamentary election
the Scottish National Party
proposed a £2,000 grant for first-time buyers to help them get onto the property ladder
.
Grants have not been forthcoming in the rest of the UK, but in July 2007 Housing Minister Yvette Cooper
announced it would be broadening the government's Homebuy Shared Equity scheme to help buyers. "Unless we act now by 2026 first-time buyers will find average house prices are ten times their salary. That could lead to real social inequality and injustice," Cooper told Parliament
.
Since then however, first time buyers have regained some momentum in the market, with reports in 2010 citing first-time buying as the most popular of consumer enquiries for a local, whole of market mortgage adviser - accounting for 37% of total enquiries .
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
.
A first-time buyer is usually desirable to a seller as they do not have to sell a property, and as such will not involve a housing chain
Chain (in selling a house)
A chain is a sequence of linked house purchases, each of which is dependent on the preceding and succeeding purchase...
.
There are many factors a first-time buyer will need to consider before purchasing their first property, such as how much they will be able to borrow, how much they can afford to pay each month, how much initial cash they will need for stamp duty, solicitor
Solicitor
Solicitors are lawyers who traditionally deal with any legal matter including conducting proceedings in courts. In the United Kingdom, a few Australian states and the Republic of Ireland, the legal profession is split between solicitors and barristers , and a lawyer will usually only hold one title...
s fees and a deposit, which sort of mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
they should use and how they should repay it.
In the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
, home ownership is seen as a natural step in the life cycle and the natural form of property tenure. Ireland has one of the highest proportions of owner-occupier
Owner-occupier
An owner-occupier is a person who lives in and owns the same home. It is a type of housing tenure. The home of the owner-occupier may be, for example, a house, apartment, condominium, or a housing cooperative...
s in the EU at around 80%.
In the UK in the 1980s almost half of all mortgages were taken out by first-time buyers, but this has now declined to only about 15%.. In Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
, FTB's represent 34% of the market.
In recent years the number of new buyers purchasing property has declined, with FTBs being "priced out of the market" by ever increasing house prices.
In the 2007 Scottish parliamentary election
Scottish Parliament election, 2007
The 2007 Scottish Parliament election was held on Thursday 3 May 2007 to elect members to the Scottish Parliament. It was the third general election to the devolved Scottish Parliament since it was created in 1999...
the Scottish National Party
Scottish National Party
The Scottish National Party is a social-democratic political party in Scotland which campaigns for Scottish independence from the United Kingdom....
proposed a £2,000 grant for first-time buyers to help them get onto the property ladder
Property ladder
The property ladder is a term widely used in the United Kingdom to describe an individual or family's lifetime progress from cheaper to more expensive housing. According to this metaphor, cheap houses for first-time buyers are at the bottom of the property ladder, and expensive houses are at the top...
.
Grants have not been forthcoming in the rest of the UK, but in July 2007 Housing Minister Yvette Cooper
Yvette Cooper
Yvette Cooper is a British Labour Party politician who has been the Member of Parliament for Normanton, Pontefract and Castleford since 2010, having previously been MP for Pontefract and Castleford since 1997. She served in the Cabinet between 2008 and 2010. She is the Shadow Home Secretary...
announced it would be broadening the government's Homebuy Shared Equity scheme to help buyers. "Unless we act now by 2026 first-time buyers will find average house prices are ten times their salary. That could lead to real social inequality and injustice," Cooper told Parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
.
Since then however, first time buyers have regained some momentum in the market, with reports in 2010 citing first-time buying as the most popular of consumer enquiries for a local, whole of market mortgage adviser - accounting for 37% of total enquiries .