Could first time buyers be another 8000 out of pocket?
New figures compared to that of last year have stated that people hoping to gain entry onto the property ladder for the first time may have to provide an additional £8000 pounds as property prices rise to a record figure of £284,000.
According to the ONS, Office for National statistics, the average asking price of a home bought by first time purchasers rose by a further 3.8 per cent over the year, up to August resulting in a price of around £215,000.
The extra strain for first time property buyers comes along following a surge in house prices reaching a record peak of £284,000. This happened across many different areas of the UK in August, having already previously climbed £2000 in a single month alone.
According to figures, property values across Northern England are said to be increasing at a faster pace annually than those in places such as London. In comparison to a year ago, asking prices around many areas of the UK are up 5.2%.
According to information from the ONS, England are currently on an all-time high where house prices are concerned as the average is now resting at around £298,000 after climbing around 5.6% during the course of the past year.
On the other hand, places such as Scotland hold data which is still below record levels seen during March, levelling out at £198,000 after taking a decline by 0.9% year on year.
Twice as fast as London, prices in the East of England have increased over the last year resulting in an 8.8% annual increase which means average values are now up to around £306,000. The ONS stated that although London have the most expensive house, they are still quite low in comparison to July.
In the year leading up to august, average prices for properties bought by current home owners has increased by around 5.8%, this is a 5.5% rise from July. An average price of one of these homes was seen to be around £332,000.
These figures provided offer additional evidence that the struggle first time buyers are exposed to in order to purchase a home is showing no signs of giving up, even with ideas to help buyers and ever growing calls for much greater support.
Director of property at the residential investment platform, property partner, Rob Weaver says that the figures which have been provided don’t indicate relief for first time buyers therefore more must be done in an effort to help.
He said; “In many cases, the people who need the biggest hand onto the ladder are having the least support. Housing has become the biggest challenge of our age, particularly for the under-35s, but we're doing nowhere near enough to help them. The low level of new homes being built is one of the factors driving up prices, and this is an area where we need innovative solutions to tackle the problem.”
Like Scotland, values in and around Wales are also below their expected levels which had been seen during January resulting in an average price of around £174,000 in august after going up ever so slightly by 0.8% annually.
Following on from this, Northern Ireland are still around 43% under their 2007 peak reaching £151,000 during August after an increase of 2.9% over the past year.
Meanwhile in London, costs have increased by around 4.2% in the 12 months leading up to August – whilst in other areas such as Yorkshire, Humber and the North West they have multiplied at quicker rates of 4.7/4.8% respectively.
Managing director of buying agents Garrington Property Finders, Jonathon Hopper said; “England's property market continues to motor ahead - but in August East Anglia was in an even higher gear than London. While the UK's rate of annual price growth was unchanged, the progress is slowly becoming more broad-based - with East and South East England emerging as the star performers. With ultra-hotspots like Cambridge powering East Anglia to a level of annual price growth that was once typical of London, north-south divide remains firmly in place.’
Nicole Cran, Pali Ltd
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