Buyers younger up North

First-time homebuyers in the North of England are, on average, younger than their counterparts in other areas of the country, and out down smaller deposits.

According to data released by the Council of Mortgage Lenders (CML), the average first-time purchaser in the North of England is 27 years old and puts down a deposit of 19%.

The oldest first-time buyers are found in London, where the average age is 30. Other research has revealed that 90% of first-time buyers in the capital in 2009 received some form of financial help from their families.

In recent years the availability of first-time buyer finance has decreased significantly, although the picture has improved in recent months. Prior to the credit crunch in 2007, 100% mortgages, which require no deposit, were provided by most lenders, while some would advance as much as 125% of a property’s value.

For borrowers with a 5% deposit, there were over 1,000 deals in 2007. Today there are no mortgages available at 100% loan to value, and only 11 at 95%, although the number of 90% deals has increased significantly since the start of the year.

In an effort to help first-time buyers and jump-start the housing market, the Government increased the Stamp Duty threshold from £125,000 to £175,000 from 2008 until the end of 2009.

The CML says the Stamp Duty holiday affected some areas of the country more than others. It calculates that 39% of first-time buyers in East Anglia were exempt from Stamp Duty in 2009 thanks to the concession – the highest proportion. The youngest home-movers were found in the East Midlands, at 32. The oldest was in the North of England, at 40.

The CML said: “The year started on a subdued note but ended much higher, leaving the industry with a greater degree of optimism for the mortgage market in 2010.”