The average price paid by a first-time buyer in the UK has reached a new record, new data shows.
A number of first-time buyers in the UK reached an estimated 162,704 during the early part of this year which is only down by 15% compared to the peak of the last boom, in 2006.
Approximate average prices paid by a first-time buyer was £207,693, however, this went up to £410,000 in London. This data is according to the Halifax First Time Buyer Review, but it is a good indication of the UK housing market at the moment.
A first-time buyer is often keen to stay up to date with real estate trends, to ensure that the property market is worth the investment and the long term benefits of the purchase.
Despite the growth in first time buyers slowed to just 3%, in comparison to an rise of 10% last year, a number of home owners getting on to the property ladder for the first time went up from 154,200 in the same period in 2016 and more than double the market low in the first half of 2009.
The launch of the Help to Buy scheme in April 2013 has significantly helped a first-time buyer or buyers to get on the property ladder. It has given people an opportunity that before wasn’t there. This occurs as the home mover owner slows down…people are not moving as much as they used to, but this doesn’t prevent housing investment opportunities from arising.
A housing economist said: “Although the number of first-time buyers grew at a slower rate in the first half of the year compared to 2016 the levels remain healthy and the market is achieving record average house price for first-time buyers.
‘For the third time in four years, the numbers getting on the housing ladder have exceeded 150,000, a level of momentum not seen since before the financial crisis.
“High levels of employment, low mortgage rates and government schemes such as Help to Buy have also helped these numbers remain robust, as first-time buyers continue to form a fundamental part of the UK housing market.”
In the first half of 2017, the average house price paid by first time buyers was £207,693 and in the past year, the average value of a typical first time buyer home has grown by 4% from £199,414.
However, London buyers have seen the average price go up by a lot – by 66% or £163,664 equivalent – since 2012 to £409,975, also the highest on record.
The average price in London is three and a half times higher than in Northern Ireland – a huge increase. Living in the city definitely has its perks, but it has its drawbacks financially, too. Depending on what means the most to people is where best an opportunity fits suit.
Alongside this trend, there has also been a growing trend in longer mortgage terms than the more traditional 25-year term. In 2007 some 48% of first-time buyers had a mortgage term of between 20 and 25 years, whilst 38% were for between 25 and 35 years.
The UK housing market is unpredictable but there are still lots of great deals to be snapped up. A first-time buyer can depend on the Help to Buy scheme but can also expect a fluctuation in modern day mortgage terms.
Written by Gemma Smith