First-time buyers set to make up a smaller proportion of the housing market than movers

Research from the property portal, Zoopla, has found that first-time buyers are set to make up a smaller proportion of homebuyers than movers, reversing a trend that has lasted for more than a year.

The research has found that stricter lending criteria has limited the options of first-time buyers by requiring larger deposits and evidence of secure employment.

In contrast, people already on the property ladder seem to be more motivated to move as a consequence of reassessing their living arrangements during lockdown.

Gardens, space and living close to family have risen up the list of movers’ priorities this year, according to the research.

Richard Donnell, Research and Insight Director at Zoopla, said: “First-time buyers have been a driving force of housing sales over the last decade.

“They remain a key buyer group but lower availability of higher loan to value mortgages and increased movement by existing homeowners means a shift in the mix of homebuyers in 2021.”

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