United Kingdom First Time Buyers Market Trends Report 2019 - ResearchAndMarkets.com

DUBLIN--()--The "First Time Buyers Market Trends Report 2019" report has been added to ResearchAndMarkets.com's offering.

In 2018, the author estimates that FTBs borrowed almost 60 billion to purchase their first homes, 4.4% more than in 2017. In 2018, the number of advances rose by 1.9%. In 2019, the author estimates the value of FTB mortgage advances will rise further by 4.3%, while the number of loans will rise by 2.4%. At the end of 2018, FTBs collectively owed over 250 billion in outstanding mortgages, which represented a 6.8% growth over the amounts owed at the end of 2017

This report updates and extends information contained in the first edition, published in July 2018. Like the first edition, this report 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.

FTBs face mounting obstacles to buy their first homes, including house prices rising faster than incomes, a lack of house building, rising rental costs and more stringent lending criteria on mortgages.

In response to these problems FTBs have:

  • Increasingly stretched mortgage terms
  • Been more willing to buy jointly even if they are unmarried
  • Exploited the opportunities to borrow on higher-income multiples
  • Sought to buy in lower-cost markets
  • Relied more heavily on financial support from family and friends
  • Used Government financial support schemes, which have allowed FTBs to buy more expensive properties and to buy at an earlier age than otherwise would have been the case.

Despite these problems, the author estimates that between 2019 and 2023, the number of mortgage advances by FTBs will rise by 23.3%, while the amount borrowed each year will rise by 38.9%, to reach over 80 billion in 2023. This will see the average advance in 2023 rise to 191,504 compared with 169,879 in 2019.

The UK mortgage market has been slow to adopt new technologies. However, many in the industry now believe that an automatic, integrated (i.e. seamless) customer journey is now possible using artificial intelligence, open banking and digital ID verification technologies. This does not mean human interaction between consumer and broker or consumer and lender will be eliminated, rather it means many of the underwriting and case processing activities will be automated.

Key Topics Covered:

1. Introduction

  • Abbreviations

2. Executive Summary

  • Almost a 60 billion market
  • High concentration downstream
  • Buying is still problematic despite Government help
  • The industry responds
  • The FCA tries to spur innovation
  • Technology to play a growing role in the market

3. Market Structure

  • The key market participants
  • The Six Stages of an FTB's Customer Journey
  • Mortgage Lenders
  • Mortgage Brokers

4. Market Developments and Drivers

  • It's a problem to get your foot on the property ladder
  • Despite some easing of the pressure in 2019
  • But over time, FTB home prices have risen faster than house prices as a whole
  • It's hard for FTBs to buy without financial support, especially in London
  • Leading many to believe they will never buy a home
  • FTBs act to get as much from their mortgages as possible
  • The industry responds
  • The Government tries to help
  • Help to Buy Equity Loan Scheme
  • Help to Buy: mortgage guarantee
  • Help to Buy ISA: over 100,000 properties purchased
  • Help to Buy: Shared Ownership
  • The government adjusts Stamp Duty Land Tax (SDLT) for FTBs
  • Mortgage Market Review tightens lending criteria.
  • And has possibly stifled innovation
  • FCA calls for better access to information

5. The Key Players

Nationwide the market leader in 2018

  • Lloyds Banking Group
  • Nationwide
  • RBS Group
  • Santander
  • Barclays Group
  • HSBC Group

6. Market Size And Trends

  • Introduction
  • Over 57 billion advanced in 2018
  • At the end of 2018, FTBs owed over 250 billion
  • FTBs account for around 24% of new advances

7. The Future

  • An uncertain future
  • Forecast assumptions
  • The Forecast
  • Technology to play a growing role in the market
  • Land Registry active in promoting digital mortgages

8. Associations

For more information about this report visit https://www.researchandmarkets.com/r/194gm9


Laura Wood, Senior Press Manager
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Laura Wood, Senior Press Manager
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900