First time buyers need £200,000 to get on property ladder

August 19, 2016 by Brendan O'Neill

Borrowers

The average price paid by first time buyers across the UK has increased to £200,000 over the last four years.

According to research by eMoov, an online estate agent, this is an increase of more than £40,000 and a 28% increase over the four years. The average price paid by a first time buyer for their home is now a little more than £196,000. During this time, the rate of home ownership for people aged 45 and below has dropped dramatically. The study was based on data from the Land Registry, discovering that the average price of a property for a first time buyer in London is much higher than the rest of the UK at £462,000.

The most affordable properties for first time buyers can be found in County Durham, where property prices have fallen. An average property price is £86,000. There is a stark north-south divide where property prices are concerned, with areas around London experiencing the largest increases in value. The price of a home for a first time buyer in Berkshire and Hertfordshire, has increased by 47% during the last four years. Waltham Forest experienced the largest increase in property values, with first time buyers expecting to pay 85% more than they would four years ago.

All buyers need advice from a CeMAP-qualified professional so that they obtain the most suitable mortgage for their requirements, whatever amount they have paid. Mortgage advisers have knowledge of the various lenders and products available.