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FTBs exiting London

Journalist: Jake Carter, Mortgage Introducer

ended 27. August 2023

First-time buyers made up 30% of Londoners buying homes outside of the capital in the first half of 2023, the highest number recorded by Hamptons since it started collecting data.

Have you seen a shift in FTB's buying habits?

How has this impacted the market?

What are you advising clients in these positions? What areas outside the capital are attracting the most interest and why?

9 responses from the Newspage community

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Darryl Dhoffer
Founder at The Mortgage Geezer
I'm certainly seeing more first-time buyers making decisions now on their wallets, as opposed to overstretching themselves on bigger mortgages, which for many, prices them out of central London properties, and instead looking at properties bordering the M25. The issue my clients are having is finding quality properties in the specific areas they are now looking at, seems to be shortages of homes in many popular areas
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
This is not through lifestyle choice, but financial need. With rents increasing and house prices in London unaffordable for most first-time buyers, coupled with the ability in a lot of jobs to work remotely or hybrid, it is not surprising many Londoners are buying more affordable homes outside of London and then remotely working or commuting in a few days. Living in London whether buying or renting is becoming increasingly for the privileged few who can afford it.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
As specialists who deal with first-time buyers, we've certainly seen an increase in Londoners buying outside the capital. This started to increase following the Covid lockdowns where there was a real desire for garden space and home offices. These are more achievable with a similar budget in areas of Essex and Kent, as opposed to London.
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Gary Boakes
Director at Verve Financial
The average Income to average house price peaked at around 11 times last year for london, so it is not a surprise when lenders started to restrict their affordability that people would have to start looking on the outskirts and further afield certainly with companies still offering flexible working conditions.
FTB are being more conservative with their borrowing focusing on the monthly cost rather than the maximum they can borrow because rates are low. This is only a good thing for the market, FTBs were skipping the traditional FTB properties ie flats and small 1-2 bed houses and buying the 3-4 bedroom properties leaving homebuyers at the bottom of chains struggling to sell properties.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
When you set it against the backdrop of runaway increases in rents it's unsurprising that homeownership is preferable for many. On top of that, there are quite a viable few zero deposit options out there now so having no deposit isn't always an insurmountable challenge.
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James Bull
Mortgage Broker at JB Mortgages
As rent and property prices creep ever higher in London, it will become increasingly difficult for first-time buyers to buy in London. It is now the norm for professionals to work from home and in turn people need a property with space, which again comes at a premium in London. Working from home does remove the need for travel, so this is making buying a cheaper but better property further out of London start to make more sense. This is what we are seeing in the market.
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Kirsty Wells
Director at Blueprint Mortgages & Protection
I have seen many first-time buyers choosing the look outside of London, if you travel slightly further down south you can get much more value for your money and those with jobs in the city, many are still able to work from home or have Hybrid working which enables clients to focus on the ideal property and location rather than focusing on commuter distance and time.
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Ross McMillan
Owner/Mortgage Advisor at Blue Fish Mortgage Solutions
For most of the UK, the London housing market holds as much relevance to them as a microwave does to a penguin—technically intriguing, but utterly unnecessary for day-to-day survival!

The fact is that whilst what goes on within the London bubble can skew the overall impression that people have of our economy and specifically the housing market, for the majority of places outwith the capital, buying activity and interest have remained robust even during these choppy times and with lower average prices and greater affordability elsewhere, it's no surprise that Londoner FTB's are spreading their wings.

In Scotland specifically, with a continued lack of affordable rental properties, the demand from first-time buyers has not been dampened for the majority of 2023 and indications are that this will remain strong. As interest rates begin to fall from current levels, the hope is that this sector once more will prove a launchpad for a more vibrant overall market UK-wide next year.
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Christian Duncan
Managing Director at Manchester Mortgage Centre
Here at the Manchester Mortgage Centre, we are still seeing first-time buyer enquiries come in from across the UK.

What I have observed since the mini budget and recent rate increases, first-time buyers are treading carefully. Instead of looking to lend "as much as possible" they are coming forward with a maximum spend per month and looking to find a property that is in line with their budget.

This can only be a good thing when we are in times of interest rate increases.

I believe that in time this will result in the top of the market contracting and the entry-level properties becoming more popular while the consumer struggles to secure affordable housing.