While the coronavirus pandemic has undoubtedly hit younger households more than other workers, perhaps surprisingly it’s also led to an increase in the number of million-pound first-time buyers.
Hamptons latest research shows that one in fifty first-time buyers spent £1m or more on their first home in 2020 - double the share recorded in 2019. The COVID induced race for space combined with low mortgage rates and a stamp duty holiday have accelerated the trend. As working from home becomes more important, some inner-city renters who have already saved up money for a deposit have decided to make the leap further afield to buy their first home.
First-time buyers in London are leap-frogging the traditional housing market ladder and buying a bigger family home in the suburbs or further outside the M25, rather than a smaller flat in the inner zones.
Six of the top 10 local authorities with the highest share of first-time buyers spending more than a million pound were outside of London.
While Westminster tops the list, Hammersmith & Fulham and Sevenoaks come in joint second where half of first-time buyers spent seven figures on their first home last year.
