First time buyers paying record prices to buy property
PUBLISHED: 14:00 04 July 2017
First time buyers are paying record prices to get on the property ladder, new research has revealed.
According to the Halifax, the average UK first time buyer paid £207,693 for their home during the first half of this year – the highest amount on record.
This was bought with the help of a £32,899 average deposit – 16 per cent of the total purchase price.
In the South East, the average first time buy cost £276,733 and was bought with an 18 per cent deposit (£50,144).
But in London, first time buyers are paying 48 per cent more - an average of £410,000 with a £106,577 deposit.
The latest Halifax First Time Buyer Review reveals that the number of first time purchasers stood at an estimated 162,704 in the first half of this year – only 15 per cent below the peak of the last boom in 2006 (190,900).
Martin Ellis, Housing Economist at Halifax, said: “Although the number of first time buyers grew at a slower rate in the first half of the year compared to 2016, the levels remain healthy and the market is achieving record average house prices for first time buyers.
“For the third time in four years the numbers getting on the housing ladder have exceeded 150,000 – a level of momentum not seen since before the financial crisis.
“High levels of employment, low mortgage rates and government schemes such as Help to Buy have also helped these numbers remain robust, as first time buyers continue to form a fundamental part of the UK housing market.”