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First-time buyers, home ownership and mortgages.
Unsurprisingly, higher housing prices have caused the average age of homeownership to increase over the past two decades. Despite this, the number of first-time buyers has increased steadily over the past decade, having reached 370,000 in 2018 – 178,000 more than in 2008.
The average age of first-time buyers
The average age of homeownership is determined when homeownership in a particular age group exceeds 50%. Therefore, the average age of first-time homeownership in 2017 was 34. This is 6 years older than it was in 2007 and 8 years older than it was in 1997.
Buying a house in the UK as a first-time buyer
The factor holding most people back from owning their first home is cost. Therefore, homeownership varies greatly depending on where people want to live. The average house price for first-time buyers in 2018 was just over £212,000. The average deposit was £32,800 and the average mortgage was £180,000.
A house is most difficult to afford in Greater London, where the average house prices, mortgages and deposits are 2.4 times higher than the UK averages. Meanwhile, buying a house in Northern Ireland will cost you the least, being just 60% of the UK average.
|Region||Average house price (£)||Average mortgage (£)||Average deposit (£)||Deposit as a percentage of purchase price|
|Yorkshire and the Humber||£142,638||£122,811||£19,827||14%|
Following the same trend, mortgage prices are generally reflective of the house prices in different regions. Throughout most of the UK, a mortgage is typically around 15% of the house price, with the exception of London, where a mortgage is on average 26% of the house price or £316,202.
Remortgaging is a great way to release equity or secure a better rate for the future. The number of remortgages from July 2018 to July 2019 varied greatly from month to month. The highest number of remortgages was 50,330 in October 2018 – 18,220 more than in June 2019. Over this 12-month period, the number of remortgages was split exactly between simple refinancing remortgages and equity withdrawn remortgages.
|Month||Number of homeowner remortgages|
Of the 22.6 million homes in the UK, 6 million homes don’t have any home insurance. This equates to 1 in every 4 homes not being covered. The homes that are uninsured are not equally distributed across the UK. Almost half (45%) of all homeowners in London do not have their homes covered, while over 80% of homeowners in Northern Ireland are insured.
Home insurance claims
Almost one third (31%) of home insurance payouts are to cover water damage. The next biggest claims are for fire and explosion (17%), theft (16%) and other domestic claims (13%).
|Type of claim||Percentage|
|Escape of water||31%|
|Fire & explosion||17%|
|Other domestic claims||13%|
Contents insurance will cover damage to any belongings found inside your home. Before taking out a policy, you need to report how much you expect the value of your items to be. With the average amount spent on personal household possessions (£35,000) amounting to more than the average UK salary (£27,000), it’s surprising that over a quarter of households have no contents insurance.
How much are my household contents worth?
The following table can give you a rough idea of how much your contents are worth based on the size of your home.
|Property type||Average contents value|
|One bed flat||£20,110|
|Two bed flat||£26,966|
|Two bed house||£28,506|
|Three bed house||£38,160|
|Four bed house||£49,316|
Bank of England
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