Between different parts of the UK
Halifax research suggests that the gap is widening in the age of first-time home buyers around the UK, with those choosing London property being 7 years older than other towns and cities. House prices seem to be slowing, which is good for some first-time buyers, however, low supply leaves home ownership out of reach for many.
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First-time buyers in the UK are typically 30 years old
Despite property growth slowing down, the gap is widening for the average age of a first-time buyer, according to Halifax.
In some areas like Cumbria and south Wales, the average age is 27, compared to London and Berkshire where the average is closer to 34.
Halifax’s report showed that their first-time borrowers were on average 30 years old.
Is home ownership in reach?
The average price of a house in the UK is now £214,024. Clearly in London areas this is considerably higher and in other cities such as Manchester and Liverpool, it is possible to find much more for your money.
House prices have risen year-on-year by 5.8%, in September, which shows the inflation of house prices is slowing, as 6 months ago the rise was 10%.
Comparing September with August 2016, there was just a 0.1% rise, based on Halifax’s own lending figures.
In the three months from July to September though they fell 0.1% compared to the three months prior.
All in all, house prices are still on the rise, but the pace is much slower.
“Year-on-year, house prices are still rising but at a slower pace” Martin Ellis, housing economist, Halifax.
Whilst this works in favour for first-time buyers that are in the process of saving for their deposit, house prices are still often rising at a faster rate than earnings.
This has reduced demand of first-time buyers as home ownership just isn’t within their reach.
Shortage of suitable properties for first-time buyers
It’s the shortage of properties on the market in general that is keeping things afloat and enabling prices to continue rising. The property market crash that was predicted, post-Brexit, has not materialised subsequently, due to this low supply of properties, and the low mortgage rates.
Is it a buyers market? Well, buyers felt it was their market, however with the economy holding up despite the uncertainly following the Referendum, it could easily turn to favour sellers.
They are the ones that are holding the strings at the moment, able to keep their price high, knowing there isn’t as much choice out there.
“Generally speaking, buyers feel it is their market, but the longer the economy holds up in the aftermath of Brexit the more the market may begin to favour sellers.” Ben Madden, Thorgills Estate Agency
For first-time buyers this housing shortage continually pushes the dreams of home-ownership out of reach.
First-time buyer looking for a mortgage? Speak to Chris
Dental & Medical Financial Services help doctors and dentists realise their dreams of home ownership by finding the best rate, highest value mortgages on the market. Please contact Chris for a free, no obligation appraisal.
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