The Daily Telegraph reports that the average age of first time buyers is now 38 years. The reason is quite simple; younger people are finding it harder and harder to save up a deposit. Mortgage lenders are asking for deposits of 20% or even more- meaning a lump sum of perhaps £40,000 on a £200,000 house. Without help from parents this means that most young people simply cannot buy a property. Lenders prepared to accept a smaller deposit usually require a higher interest rate so the monthly costs will be greater.
This may sound like good news for buy to let investors because more and more people are forced to rent because they cannot afford to buy. However, perhaps the lack of buyers will exert downward pressure on house prices.