lucy lewis
Elderly national economy and first-time buyers lead the way
Skipton Building Society
If you're an agent, you're well aware that securing financing to buy your first home is one of the biggest financial challenges of our time.
Hardly a week goes by that the media doesn't cover the struggles faced by first-time buyers. It shows how climbing the property ladder is out of reach for many people. 
At Skipton Building Society, we are contributing to this very important conversation. For example, earlier this year we reported that 64% of unmarried couples believe buying their first home is more important than getting married.
Our separate research found that four in 10 renters are considering moving back in with their parents, and just over three-quarters agree they can save money for a house faster.
We are committed to thinking outside the box and providing much-needed options to new buyers.
We're offering these insights not just to grab a few headlines, but because the struggles of first-time buyers are a topic close to our hearts.
Our philosophy is that everyone should have a place to call home. And we want to do something about it.
As a mutual company with roots dating back to 1853, we believe in having a purpose-driven strategy to care for our members. Helping more people own a home is a key part of that.
In 2023, we're proud to have helped more than 19,000 first-time buyers make their dreams of homeownership a reality. This is a 40% increase over the previous year. But there's more we want to do.
The average price of a house in the UK rose by 60% between December 2013 and December 2023, according to the Office for National Statistics. However, over the same period, average earnings for full-time workers in the UK rose by just 29%, according to Statista statistics. And the average monthly home rental payment has skyrocketed by 82% over the past decade.
Given the recent cost of living crisis, the effects of which we are still feeling, how can first-time homebuyers save well to buy a home?
We are passionate about eliminating the jargon when it comes to home buying
The first step on the ladder seems to push you higher and higher.
The scale of the housing affordability challenge
What sets Skipton Building Society apart from most other mortgage lenders is the fact that we have extensive insight into the housing market and the various steps first-time buyers need to go through.
We lead the Skipton Group, which is made up of a variety of organizations with a common goal. This includes Connells, the UK's largest real estate agency. Our group helped around one in 10 people buy or sell a home in the UK last year.
We see and hear about the challenges and opportunities faced by first-time buyers and intermediaries, and we want to leverage the power of our group to contribute to society on this important issue.
We were able to bring together different insights from our group of companies to launch the Skipton Group Home Affordability Index. This is a tool and dataset that analyzes both the affordability of purchasing real estate and its operating costs to better understand the full picture of affordability challenges faced by renters and first-time buyers.
We believe in having a strategy to care for our members that is purpose-driven.
In July, we published our first findings, and the findings are grim. Only one in eight potential first-time buyers can afford the average first-time buyer home in their area.
Things look even more difficult for first-time buyers who live in the bottom quarter of the UK's income bracket. Fewer than one in 100 people can afford to step onto the property ladder locally. When it comes to renters, 4 in 10 spend more than 45% of their income on essential housing costs.
Helping more people own a home
In response to these findings and in line with our objectives, we are launching a new range of mortgage products designed specifically for first-time buyers and addressing the challenges faced by first-time buyers and brokers. We removed some of the gender barriers.
We were able to bring together the insights of our group of companies to launch the Skipton Group Home Affordability Index.
We have launched new products and added other reference points that may suit clients who need a little help. for example:
First-time buyers can borrow up to 5.5x at up to 90% LTV. Up to 95% LTV available (including new construction and apartments). Standard appraisal fees are free. £1,500 cashback on selected products when you complete your home purchase (minimum loan requirement £125,000). Discounted home inspections provided by Connells.
This is in addition to other innovative mortgage products designed for first-time buyers.
Our Income Booster Scheme (also known as JBSP) allows customers to add up to three people to their mortgage without becoming the legal owner of the property. Also, unlike other financial institutions, you don't have to be a family member. We also have our unique Track Record home loan with a deposit of 5% or less. Eligibility criteria apply.
Our philosophy is that everyone should have a place to call home. and we want to do something about it
We have a strong track record of doing a lot to support first-time buyers. We were the first organization to offer a Cash Lifetime ISA, allowing people to save for their first home.
We're also passionate about eliminating jargon when it comes to home buying. Our research found that 77% of first-time buyers feel more stressed about the process.
We help you achieve more
The experience of many brokers we speak to shows how frustrating it can be for first-time buyer clients who have limited options to support them across the market. We are committed to thinking outside the box and providing much-needed options to new buyers.
We want to work closely with you to find your mortgage solution and give you the peace of mind and confidence you need to become a property owner.
You can try the House Price Index tool here
Click here to learn more about our efforts for first-time buyers.
Click here for more information about Income Booster
Click on the post below to read more articles on supplements for first-time buyers.
Leader: Help is on the way
Features: Further
Special Feature: First-time buyers overcome cost-of-living crisis
A supplementary digital version is also available here
