First-time buyers are becoming older and buying bigger, says leading Lincolnshire developer

Kevin Stevens says the days of first-time buyers only being in the market for studio apartments and flats are disappearing as a result of long-term changes in both the market and society.

Kevin, president and founder of the award-winning E5 Living, says high levels of Stamp Duty, a relaxation in mortgage conditions and the continuing high cost of UK property are behind a generational shift in buying attitudes.

“Not so long ago, it was the norm for people in their 20s to look to buy their first property, which would typically be a small flat or studio apartment at the bottom end of the housing ladder.

“They would then sell for a slightly bigger home, then another and gradually work their way up the ladder as they grew older and their families grew with them.

“Now, we are starting to see the breakdown of that long-established model and a new kind of housing market for first-time buyers emerge in its wake.”

Kevin – whose company is behind new high-quality residential developments in Grimsby and Lincolnshire – said buyers taking their first steps into the market were now typically much older and keen to snap up much larger family homes as their first purchase.

And according to figures from lender Halifax, North East Lincolnshire is in the top ten places in the UK for affordability for first time buyers.

“To meet this shift in demand, we’re able to offer first-time buyers the chance to reserve a home for under £100 at our King’s Park Village development in Grimsby.

“The current level of house prices mean people generally are waiting longer to get their deposits in place before buying – often leaving it well into their 30s. For a number of reasons, such as inheritance and salary, they are them able to afford something larger.

“If you take our development at King’s Park Village as an example, we have seen a much greater interest in our two and three bedroom homes from first-timers than we would have anticipated a few years ago.

“One advantage of buying a bigger first-time home is that you are future-proofed to an extent – and save yourself the huge expense of paying Stamp Duty every time you find you need a bit more space.

“We are certainly hearing from buyers that punitive Stamp Duty charges are changing the way they view property investment, and they just want to buy once and then stay put for as long as possible.

“With the rules around mortgage conditions continuing to relax, it’s also possible to secure lending at much more attractive rates which further incentivises the decision to buy bigger.

“It’s a real opportunity for first-time buyers to buy once and have a home that they will treasure – and which will meet all their needs – for years to come,” added Kevin.