The number of first-time buyers is at a seven-year high, according to the Halifax First Time Buyer review. The size of the average deposit is also shrinking - good news for wannabe home buyers.
But Brits expect house prices to rise, with one in four thinking house prices could leap between 5% and 10% in the next year. In other words, the typical first-time buyer house could rocket up £17,187 to £189,057.
First-time buyers in numbers
30
Average age
£29,218
Average deposit
£171,870
Average price paid
Halifax
So what schemes can help first-time buyers make an affordable jump onto the housing ladder before it gets even harder than it is now?
The Government’s flagship scheme is designed to help house hunters find a mortgage with a 5% deposit. There are actually two different ways you can do this:
If you are a council tenant with at least five years’ tenancy, you may be able to buy your home at a discount of up to £77,000 in England (£102,700 in London). Local councils gave away a whopping £679million in discounts under the Right to Buy scheme last year. Some housing association tenants can also take advantage of the scheme. You will have to apply for the mortgage like any other.
The Scottish government has scrapped Right to Buy from 2016. This means if you want to take advantage of it you will need to buy before 31 July 2016. .
You can also find out information about Right to Buy in and .
You can buy a share of your home - between 25% and 75% - through a housing association. You then pay rent on the remaining share and buy more when you can afford to. Council or housing association tenants, members of the armed forces, older and disabled people have priority. It’s worth finding out if there are any other local priority groups as well.
To buy a home through a shared ownership scheme contact the Help to Buy agent in the area you want to live. Londoners can search for schemes through the portal. You can also search with the
The is open to 100,000 first-time buyers under 40. Would-be homeowners will soon be able to register their interest, so keep checking for details.
is an older version of Help to Buy which also allows you to buy a newly built home with a deposit of just 5%.
The is a partnership between councils and mortgage lenders, designed to allow first-time buyers to buy with a mortgage of 5%. If your council is part of the scheme, it will direct you towards the participating members.
If you are planning to take out a mortgage, it's important to be aware that interest rates could rise in future, . You can on how to save money on mortgage rates.