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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

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 It is now over 6 months old so the content may be out of date.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.

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