Over the last decade it has become increasingly difficult for first time buyers to get on the property ladder for several reasons; ever increasing house prices, difficulty getting an affordable mortgage and having sufficient savings to put down as a deposit, and the problem is getting worse!
Of course there is a huge disparity in house prices across the UK. London is one of the most expensive areas and therefore least affordable for the first time buyer. Whereas Stirling in Scotland is the most affordable
According to a report by the Halifax, first-time buyers are paying the highest amount on record to step on to the property ladder with average UK prices for a first home reaching £207,693 and for those wanting to live in London the prices escalate to nearly £410,000.
Saving for a deposit also remains a huge challenge with the average deposit hitting £32,899.
These figures are very depressing for those first-time buyers who have delayed their house purchase, perhaps to save up for a deposit, as the report shows that during the past five years, the average house price has grown by a staggering 50% from £138,663 to £207,693. This means that first-timers buying their first home today – rather than five years ago – will have to fork out an additional £69,025.
The North West is one of the more affordable areas of the UK to live in, with an average house price of £146,551, but the average mortgage in this area is £125,169. Therefore the average deposit young first time buyers have to find is £21,382, which is approximately 15% of the purchase price.
If you are looking to get on the property ladder and in need of expert advice Peter Robinson & Co. are able to assist you every step of the way.
Contact Peter Robinson & Co. on 0161 678 7996