First time buyers’ prices at record high

 

House prices for first-time buyers rise to record high as supply dwindles

House prices for first-time buyers surged to a record high in August, with the typical first-time buyer paying 3.8% more than they would have done a year earlier.

The average price paid for a starter home in the UK is now £215,000. With a deposit of 10%, this means buyers would need a salary of around £45,000 a year to get their first step on the housing ladder.

Prices for first-time home owners have risen despite Government efforts to make houses more affordable for young buyers.

The Government’s flagship scheme is Help to Buy, which allows people to buy a house priced up to £600,000 with a deposit of as little as 5%. However, a shortage of homes on the market is pushing up prices as supply cannot keep pace with demand.

It means the number of first-time buyers aged between 16 and 24 has collapsed in recent years. From a high of one in three in the mid-1980s, now just one in 10 people aged under 24 are able to afford to buy.

Article from The Telegraph.