DUBLIN--(BUSINESS WIRE)--"The First Time Buyers UK Market Report 2021" report has been added to ResearchAndMarkets.com's offering.
The First Time Mortgage Buyers, Market Trends Report 2021 outlines the broad trends and developments amongst first-time buyers (FTBs), who are defined as consumers who have arranged and taken out a mortgage on the first home they have owned within the last year. The report focuses on the latest developments and market drivers of the FTB mortgage market, the market size and the future of the market in the coming five years. It focused on particular on the impact of the COVID-19 pandemic on the market.
In 2020, the publisher estimates that FTBs borrowed 7.2% less to purchase their first homes, compared with 2019, mainly due to the impact of COVID-19. In 2020, the number of new mortgages taken out fell by 12.6%, again the decline reflecting the impact of COVID-19 on the market. At the end of December 2020, FTBs collectively owed £289 billion on outstanding mortgages, which represented a 7.1% growth over the amounts owed at the end of 2019.
Given the likely course of the UK economy and the UK housing market, the publisher estimates that between 2020 and 2025, the number of mortgage advances by FTBs will rise by 15.1%, while gross annual mortgage lending rise by 39.8% This trend, however, masks an expected sharp rise in the FTB market in 2021 due to the SDLT holiday and increased ability of individuals to view properties, followed by two more subdued years as the market adjusts to a more normal operating environment. Growth will return from 2023 onwards.
COVID-19 has had a major impact on the market in 2020/21, deterring some FTBs from buying a home but also leading the Government to introduce a Stamp Duty holiday, which encouraged strong buying demand ahead of the ending of the holiday.
Key Topics Covered:
INTRODUCTION
- Abbreviations
EXECUTIVE SUMMARY
- COVID-19 re-shapes the market
- The market does not always work well for FTBs
- Lloyds Banking Group and Nationwide the market leaders
- Gross mortgage lending to FTBs falls by 7% in 2020
MARKET STRUCTURE
- The key market participants
- The Six Stages of an FTB's Customer Journey
- Mortgage Lenders
- Mortgage Brokers
MARKET DEVELOPMENTS AND DRIVERS
- COVID-19
- It's not getting any easier to buy your first home
- COVID-19 pushes up house prices
- Price rises stronger outside of London and the South East
- Tightening of lending criteria lowered LTV ratios
- While housing demand rose, almost half of FTBs postponed purchasing
- Buying is expensive but the lockdown made it cheaper to buy rather than rent
- FTBs face price discrimination
- Guarantor mortgages
- The Government support schemes
- Help to Buy ISA/Lifetime Individual Savings Account (LISA)
- Help to Buy Equity Loan Scheme
- The mortgage guarantee scheme
- First Homes
- Other official support schemes
- Government adjusts Stamp Duty Land Tax (SDLT) for FTBs
- FCA responds to COVID-19
- FCA calls for better access to information
THE KEY PLAYERS
- Lloyds Banking Group and Nationwide the market leaders
- Lloyds Banking Group
- Nationwide
- NatWest Group
- Santander
- Barclays Group
- HSBC Group
MARKET SIZE AND TRENDS
- Introduction
- Gross mortgage lending to FTBs falls by 7% in 2020
- FTBs owe almost £300 billion
- FTBs account for around 24% of new advances
THE FUTURE
- Many uncertainties regarding the future
- Forecast assumptions
- The Forecast
- Open data to shape the market in the future
- A digital future
ASSOCIATIONS
For more information about this report visit https://www.researchandmarkets.com/r/bcjwvi
