The challenges of a first-time buyer looking to buy in Lancaster and Morecambe

It’s no secret now that the Lancaster and Morecambe Housing market is booming. Houses are selling, property prices are rising and demand post Covid is high – fuelled by pent up demand, the desire for home offices and also the stamp duty holiday.

Property investors are buying houses, safe in the knowledge that property is safer than stocks and shares and their return on their initial investment is significantly higher than the interest rate in the bank.

But what about the first time buyer? Once again, it appears they are getting left behind.

The average age of a first-time buyer

The average age of a first-time buyer is currently 31 in the UK. It has actually stayed at this age for the past 15 years. Todays younger generation are choosing to stay at home with parents for longer as they save for deposits. Others are opting at rent, hence the UK rental market has seen massive growth. The problem as more landlords buy homes to fill the serve the rental demand, the poor first-time buyer still can’t get on the ladder.

Issues first time buyers are facing

First-time buyers have always faced numerous issues. Back in 1999 when I bought my first home, affordability was always an issue and that hasn’t changed. Sadly it has got worse. The average household income stands at just over £30,000, however, the average first-time buyer house now stands at £241,025 in the UK. Luckily closer to home in Lancaster and Morecambe, first-time buyers can still find good housing for under £125,000. To give you an indication there are currently 401 properties available for sale across region priced under £125,000.

Rising house prices are not the only obstacles for first-time buyers. Mortgages are becoming harder to get. The pandemic has led to fewer higher LTV products available and increased mortgage rates on higher LTV products.


In recent years the government has tried different solutions. Help to buy was certainly one of them, along with the Help to Buy ISA. Altering the stamp duty levels was another.

However, first-time buyers are now facing the prospect of having to save larger deposits. Even on a home at £100,000, this is at least £10,000, if not 15% (many lenders are pulling the 90% mortgage deal).

In 2019, 19% of house sales were funded partly or wholly by friends and family, and this figure is expected to rise to 23% in 2020.  The question is, are you in a position to help your child in the future?

If you would like to talk property, please give us a call. Our number is 01524 843322 or you can email me at