First-time buyers suffer as house prices rise - Mortgages - News - Moneyfacts

News

First-time buyers suffer as house prices rise

First-time buyers suffer as house prices rise

Category: Mortgages

Updated: 18/09/2012
First Published: 18/09/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The average UK house price increased to £234,000 in July, reflecting an overall annual rise of 2%.

According to latest data from the Office for National Statistics (ONS), the average pre-owned home soared by 2% to £269,000, whilst properties bought by first-time buyers rose to £174,000.

The increase in average prices has meant first-time buyers purchasing properties in July paid up to 1.8% more than in the previous year.

Despite being lower than the annual increase of 3.1% between June 2011 and 2012, high property prices combined with the end of the 1% stamp duty holiday, will have had a profound effect on buyers' affordability.

Stamp duty for properties priced between £125,000 and £250,000 was scrapped temporarily for two years between 2010 and 2012 in an attempt to revive the ailing housing market.

London continues to be the most expensive region of the UK to live, with the average home costing £397,000.

In contrast, the North East of England offers buyers the cheapest homes at an average of £145,000.

What Next?

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close