First-time homeowners situation improves
While many young adults are struggling to buy their first home, the situation for first-time homeowners is improving.
Figures from our data warehouse which details clients’ circumstances show that fewer homeowners in their twenties are seeking our help, down from 4,489 in 2009 to 3,008 in 2011.
The number of homeowners in mortgage arrears in their twenties has almost halved over the past two years. Only 816 clients in their twenties had mortgage arrears in 2011 compared with 1,344 in 2009.
There has also been a dramatic improvement in the household budgets of our homeowning clients in their twenties. They have gone from having a budget deficit of £15.02 in 2009 to having a budget surplus of £63.42 in 2011.
The budget situation of our homeowning clients in their twenties with arrears has improved too, rising from a budget deficit of £239.40 in 2009 to one of £113.78 in 2011.
These improvements are probably down to low interest rates which have seen average monthly mortgage payments for homeowning clients in their twenties going down from £543.92 in 2009 to £471.61 in 2011.
Although many young adults are struggling to get on the property ladder, the outlook is more positive for those that are already on it. Nevertheless, this is not a time for complacency as there are multiple pressures attacking their ability to pay their mortgage and many will buckle under the pressure of rising interest rates.