'Returners' boost housing market

The nature of the first-time buyer may be changing

The UK housing market is being buoyed by a new breed of first-time buyer, Nationwide Building Society has said.

These "returners" are older people who may be moving back into the market after time spent renting, perhaps following a relationship breakdown.

These people have bigger deposits and incomes and are more able to take on substantial mortgages to get onto the property ladder.

Nationwide estimated returners account for one in five first-time buyers.

The proportion of younger people, in the 20-24 age bracket, able to get onto the property ladder has fallen dramatically over the past decade.

In 1994, 34% of people aged 20-24 were homeowners.

A decade later the figure had fallen to 20%.

The biggest barrier to these people is finding a large enough deposit to secure a mortgage, the group added.

Overall, though, first-time buyers still play an important role in the property market, accounting for nearly five out of ten purchases.

This "resilience" is due to the phenomenon of the returner, Nationwide said.

"No longer can we think of first-time buyers as the fresh-faced young person or couple," Fionnuala Earley, Nationwide Group economist, said.

"Rather the category includes a significant proportion of buyers returning to the market...such buyers often have access to deposits funded from past increases in house prices," she added.