The latest Halifax first-time buyer review shows that in the last ten years, houses prices for first-time buyers have risen by 21 per cent versus 10 per cent for all buyer types.
This means that the average price to get on the property ladder is now £209,000, significantly more than the it would have set you back in 2008 – £172,659.
Deposit amounts have also increased, nationally standing at an average of £33,127 – 71 per cent more than the £19,364 people put down a decade ago. The amount London-based FTBs are coughing up for a deposit puts these numbers in the shade, though: according to the Halifax’s report, £114,952 – 27 per cent of the average house price of £419,608.
The report also points out that according to the ONS, 34 per cent of FTBs received financial help in securing a property.
For many younger people, prospects appear gloomy: Halifax reports that 20 per cent of respondents aged 18-34 believe that they’ll be renting forever, a vision shared by 26 per cent of those aged 31-34 who currently rent. Meanwhile, a third of young people think that the only way to get a mortgage is to wait for an inheritance.
In contrast to this, Halifax’s data show that 51 per cent of buyers are doing so for the first time now, whereas in 2008 this number stood at 38 per cent. This comes alongside a rise in the average age of a first-time buyer – from 31 a decade ago to 33 today.
Halifax managing director Russell Galley says: “First-time buyers are having to dig deeper than ever to get onto the property ladder.
“Despite these increases, and the concern many young people feel about home ownership, the number of first-time buyers continues to grow and is nearly back to the peak seen of 2006. Government measures, such as Help to Buy, and record low mortgage rates continue to make buying more financially attractive than renting, with savings of £900 a year.”