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The number of new first-time buyers with a mortgage fell last year to the UK’s lowest level in a decade, according to a new report.

Yorkshire Building Society said around 290,000 first-time property owners entered the mortgage market in 2023 – a decline of more than a fifth on 2022’s total of 370,287.

It comes after the housing market was hit by high mortgage rates and house prices last year, along with the ongoing impact of cost of living pressures on consumers.

The building society said 2023’s total was the lowest since 2013, when 260,000 first-time buyers entered the mortgage market.

But its director of mortgages Ben Merritt said there was still a strong appetite to get on the property ladder, despite the challenges many were having in meeting affordability requirements.

He said: “First-time buyers are the lifeblood of the market and are still clearly keen to buy.

“The wider market relies on them, not least to support purchases higher up the chain.”

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Analysts expect conditions for buyers to improve this year.

Mortgage rates have eased in recent months amid falling inflation and expectations that the Bank of England will start cutting interest rates in 2024.

Some lenders also expect house prices to remain static or fall this year.

Yorkshire Building Society group economist Max Shepherd said: “Current market expectations suggest several rate cuts in 2024, which would ease mortgage rates in the first half of the year.”

The number of first-time buyers hit a 20-year high in 2021, with more than 400,000 people entering the market following a cut in stamp duty and a rise in demand for extra space as more people worked from home during the COVID pandemic.

However borrowing costs, including mortgages, started to rise after the Bank of England began increasing interest rates in December 2021 in an attempt to bring down inflation.

Yorkshire Building Society, the UK’s third largest, also said the overall number of property buyers decreased at an even more severe rate last year, meaning the proportion of first-time buyers rose to 54% of the total – up from 53% in 2022.

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MPs seek COVID-19-style financial support cyberattack hit Jaguar Land Rover

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MPs seek COVID-19-style financial support cyberattack hit Jaguar Land Rover

An influential committee of MPs is seeking COVID-19-style financial support for Jaguar Land Rover as it tries to recover from a cyberattack.

After a week of plant closures, the Committee for Business and Trade has written to the chancellor, asking her what is being offered to the carmaker “to mitigate the risk of significant, long-term commercial damage to affected firms”.

The 34,000 UK workers of Jaguar Land Rover (JLR) are to remain at home until at least next week after a cyberattack discovered last week halted operations.

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Staff are still being paid from JLR sites in Halewood, Merseyside, and Solihull and Wolverhampton in the West Midlands, but the entire economy around the West Midlands is affected.

JLR suppliers Evtec, WHS Plastics, SurTec and OPmobility have had to temporarily lay off roughly 6,000 staff.

Operations could be disrupted for “most of September” or worse, according to a report from The Sunday Times.

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On Thursday, Business and Trade Committee chair Liam Byrne wrote to Chancellor Rachel Reeves, saying: “Firms across the supply chain are now warning the committee of disruption to both upstream and downstream businesses.

“This disruption, we are told, may imminently pose very significant risks to cashflow.”

Intervention, akin to the emergency steps taken to secure British Steel production, is suggested by Mr Byrne to “protect sovereign areas of strength in the UK’s industrial, scientific and technological base”.

A group of English-speaking hackers claimed responsibility for the JLR attack via a Telegram platform called Scattered Lapsus$ Hunters, an amalgamation of the names of hacking groups Scattered Spider, Lapsus$ and ShinyHunters.

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Four arrested over M&S, Co-Op and Harrods cyber attacks

Scattered Spider, a loose group of relatively young hackers, were behind the Co-Op, Harrods and M&S attacks.

Four people were arrested for their suspected involvement in the April attacks and have been bailed.

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M&S tech chief leaves months after cyber attack cost it £300m

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M&S tech chief leaves months after cyber attack cost it £300m

The Marks & Spencer (M&S) executive responsible for its technology function is leaving the retailer months after a devastating cyber attack which disrupted its systems at a cost of hundreds of millions of pounds.

Sky News has learnt that Rachel Higham, M&S‘s chief digital and technology officer, is leaving the company.

A former WPP and BT Group executive, Ms Higham was hired by M&S early last year.

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Her departure was announced in an internal memo circulated on Thursday.

In it, the company said she was “stepping back from her role”.

“Rachel has been a steady hand and calm head at an extraordinary time for the business, and we wish her well for the future”.

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July: Four arrested over cyber attacks

The April cyber attack on M&S, which was conducted by a group called Scattered Spider, brought its online operations to a halt, underlining the growing threat posed by such incidents.

Its click-and-collect service is now back up and running, and the retailer expects part of its costs to be covered by insurance.

M&S said early last month that it was not looking to replace Ms Higham following an enquiry from Sky News.

It was unclear who would succeed her in the role or whether she would be eligible for a payoff.

An M&S spokeswoman confirmed on Thursday that the memo was genuine but refused to comment further.

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Supermarket spreadable matches Lurpak in taste test | Sign up to Money newsletter

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Supermarket spreadable matches Lurpak in taste test | Sign up to Money newsletter

Sky News has launched a free Money newsletter – bringing the kind of content you enjoy in the Money blog directly to your inbox.

Each Friday, subscribers get exclusive money-saving tips and features from the team behind the award-winning Money blog, which is read by millions of Britons every month.

Sign up today, and this week you’ll find the following in the newsletter:

  • The free £2,000 that 800,000 parents aren’t claiming
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  • And we outline the best deals available in five key areas for your household budget

So join our growing Money community – and thanks to the thousands of you who already have.

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As a subscriber, you get additional exclusive content that goes beyond the blog.

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You also get first looks at popular features such as Money Problem, Cheap Eats, What It’s Really Like To Be A and our weekend Long Read.

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