Derin Clark

Derin Clark

Online Reporter
Published: 07/11/2019

The housing market continued to struggle as consumers remained cautious with their finances, the latest Halifax House Price Index reveals.

The average house price during October was £232,249, which was a 0.1% fall compared to the previous month and just a 0.9% rise compared to a year ago.

While this static housing market could be seen as good news for first-time buyers, many still face a challenge in raising the deposit needed to buy their first home. With the current average house price, a first-time buyer would need to save £23,225 in order to be put down a 10% deposit on the average house. As well as this, those saving for a deposit for their first home will no longer be able to open a Help to Buy ISA after 30 November and are being urged to open one in the next few weeks in order to benefit from the 25% Government bonus. 

Saying this, despite the challenges, many first-time buyers are managing to get onto the housing as research by Halifax revealed that first-time buyers account for more than half (51%) of the UK’s mortgage market last year, the first time this has happened since 1995.

Commenting on the Halifax House Price Index, Russell Galley, managing director, Halifax, said: “Average house prices continued to slow in October, with a modest rise of 0.9% over the past year. While this is the lowest growth seen in 2019, it again extends the largely flat trend which has taken hold over recent months.

“A number of underlying factors such as mortgage affordability and wage growth continue to support prices, however there is evidence of consumers erring on the side of caution.

“We remain unchanged from our view that activity levels and price growth will remain subdued while the UK navigates political and economic uncertainty.”

Saving for your first home

Those saving for a deposit for their first home need to act quickly to open a Help to Buy ISA before the scheme ends on the 30 November. After this date, while savers will not be able to open a new account, they will be able to continue depositing money into an existing Help to Buy ISA until 30 November 2029 but will have to claim the 25% bonus before the 1 December 2030. For those who miss out on the Help to Buy ISA, they will still be able to benefit from a 25% Government bonus by opening a Lifetime ISA. To find out more about Lifetime ISAs, read out guide Help to Buy ISA versus Lifetime ISA

 

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