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Figures from UK Finance show mortgage sales fell 26% to 251,000 last year compared to the previous 12 months, the lowest level since 1974.
Banking industry group Household Finance Review Q4 found that one in five first-time buyers will not take out a mortgage for 35 years or more as “significant affordability challenges” hit the market. However, a year ago, the number was one in 10, he added.
The number of FTB loans last year fell 22.4% from 12 months ago, the lowest level since 2013.
The report found that among the broader dislocated population, “most of whom do not receive support such as family support or stamp duty exemptions”, but like the FTB, upward pressure on interest rates and living costs “has hit even harder.” “I received it,” he said.
The report said: “2023 saw affordability pressures associated with a downturn in the mortgage market. Similar pressures are likely to constrain activity in 2024, but forward-looking data will “This suggests some recovery in the quarter.”
“Throughout 2023, rising costs of living and rising mortgage rates led to a significant decline in mortgage lending across all sectors.”
Regarding household savings, the report said: “Savings levels fell every month last year for the first time in 25 years, as households quickly ran out of cash to cover large bills and expenses.”
“However, many households, especially those without savings, will need to reduce their monthly expenses.”
However, the study added: “The number of applications for mortgages increased in the fourth quarter of 2023. The increase in applications could see the market grow in early 2024 as inflationary pressures ease and borrowing costs are expected to decline thereafter. It shows that there is.”
Eric Lenders, managing director of personal finance at UK Finance, said: “2023 was a tough year for UK households and we expect continued challenges in 2024. “There are barriers to ownership, but that pressure should gradually start to ease over this year and next.” ”
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