The gap between first-time buyers and those moving up the property ladder continues to grow. First-time buyers are increasingly required to contribute more of their own savings and are borrowing relatively higher amounts for lower-quality homes, often with less favorable energy labels. This leads to higher monthly costs, partly because they fall into higher risk categories and consequently pay more interest.
Furthermore, first-time buyers are more frequently purchasing cheaper, former rental properties that are in poorer condition.
Meanwhile, the housing market appears to be stabilizing slightly. The average house price saw limited growth, and the number of mortgage applications increased slightly. Notably, there was a record-breaking week in March where applications surged significantly. This underscores how sensitive the housing market remains to interest rate developments and international tensions.
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