Research by Stipendium reveals that first-time buyers account for one in 10 of all property transactions across England.
The property platform analysed the latest data on stamp duty receipts for residential house purchases at £40,000 or above.
It found that with the property market boom at the height of the pandemic, just over one million transactions were recorded in the year 2020/21. Some 110,700 of these came from first-time buyers – accounting for 11.1% of total market activity.
By region
In terms of total SDLT transactions from first-time buyers, the South East ranks top, with 19,300 completing in the last year. However, this accounted for 10.7% of total market activity – the third-lowest level behind Yorkshire and the Humber (9.3%) and the North East (7.1%).
The West Midlands has proved to be the most first-time buyer-friendly market, with transactions accounting for 13.5% of all market activity in a single year.
Elsewhere, first-time buyers in the East of England accounted for 12.3% of all property purchases, with the East Midlands (11.7%) and, perhaps surprisingly, London (11.2%) also ranking high.
By local authority
Barking and Dagenham places first as the most first-time buyer-friendly area of the property market, accounting for a quarter of all transactions.
Thurrock and Harlow followed close behind, where 24% of annual property purchases came via first-time buyers.
Peterborough, Stevenage and Sandwell also ranked high at 21%, as did Bristol, Oadby and Wigston, Knowsley and Luton (20%).
According to Stipendium’s findings, the worst area to be a first-time buyer are Kensington and Chelsea and the City of London. Not a single transaction came via first-time buyers in 2020/21, with Westminster (3%), Norfolk and Chichester (3.7%) also home to some of the lowest levels of FTB market activity.
FTBs remain resolute
Christina Melling, chief executive officer of Stipendium, comments: “First-time buyers are facing the highest financial hurdle on record when it comes to getting that all-important first foot on the ladder and the cost of homeownership has climbed considerably in the last two years alone.”
“Despite this fact, they’ve remained resolute in pursuing this life goal and have accounted for more than one in 10 transactions on an annual basis. Of course, the ability to buy does differ drastically from one area to the next and while first-time buyers have accounted for a quarter of all market activity in some areas, they remain completely priced out of the market in others.”
Table shows total resi transactions and the proportion accounted for by FTBs by region and nationally |
Location |
SDLT resi transactions 2020-21 |
FTBR SDLT transactions 2020-21 |
FTBR transactions as % of SDLT resi transactions 2020-21 |
West Midlands |
95,900 |
12,900 |
13.5% |
East of England |
121,400 |
14,900 |
12.3% |
East Midlands |
90,700 |
10,600 |
11.7% |
London |
120,300 |
13,500 |
11.2% |
South West |
116,500 |
12,900 |
11.1% |
North West |
132,500 |
14,300 |
10.8% |
South East |
181,100 |
19,300 |
10.7% |
Yorkshire and The Humber
|
96,900 |
9,000 |
9.3% |
North East |
45,000 |
3,200 |
7.1% |
England |
1,000,300 |
110,700 |
11.1% |
|
|
|
Table shows the areas with the highest proportion of FTB transactions |
Location |
SDLT resi transactions 2020-21 |
FTBR SDLT transactions 2020-21 |
FTBR transactions as % of SDLT resi transactions 2020-21 |
Barking and Dagenham
|
2,400 |
600 |
25% |
Thurrock |
2,900 |
700 |
24% |
Harlow |
1,700 |
400 |
24% |
City of Peterborough |
3,700 |
800 |
22% |
Stevenage |
1,400 |
300 |
21% |
Sandwell |
3,400 |
700 |
21% |
City of Bristol |
7,900 |
1,600 |
20% |
Oadby and Wigston |
1,000 |
200 |
20% |
Knowsley |
2,500 |
500 |
20% |
Luton |
2,500 |
500 |
20% |
Table shows the areas with the lowest proportion of FTB transactions |
Location |
SDLT resi transactions 2020-21 |
FTBR SDLT transactions 2020-21 |
FTBR transactions as % of SDLT resi transactions 2020-21 |
Kensington and Chelsea
|
2,300 |
0 |
0.0% |
City of London |
300 |
0 |
0.0% |
City of Westminster |
3,300 |
100 |
3.0% |
North Norfolk |
2,700 |
100 |
3.7% |
Chichester |
2,700 |
100 |
3.7% |
Camden |
2,600 |
100 |
3.8% |
Scarborough |
2,600 |
100 |
3.8% |
Blackpool |
2,500 |
100 |
4.0% |
Rother |
2,300 |
100 |
4.3% |
Darlington |
2,200 |
100 |
4.5% |
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