The average property price for first-time buyers has risen by 21% in the past decade, according to new research from Halifax.
As first-time buyer numbers reach their highest inside a decade, the typical price they pay has soared from lb172,659 in 2008 to lb208,741 today.
First-time buyers are now the largest number of homebuyers, with 51% of all mortgage-financed property purchases being made by first-timers between January and June 2022.
And rises internally prices over the past few years mean the average chronilogical age of a first-time buyer has become 31.
First-time buyer house prices rising in most areas
The biggest increase has, unsurprisingly, been in London. First-time homebuyer prices within the capital have risen an astonishing 48% previously decade, now standing at lb419,608.
The South East has witnessed the second-sharpest rise (37%), with first-timers there now paying lb275,632. This was followed by East Anglia, which rose 30% to lb210,639.
At another end from the spectrum, first-time buyer prices in Northern Ireland have seen a considerable decrease, visiting 33% to lb124,035.
First-time buyers also saw only modest price increases in the North (8%) and Wales (9%).
You can easily see how much individuals are paying by local authority in the map below.
How much deposit are first-time buyers putting down?
The average deposit paid by a first-time buyer is now lb33,127, up 71% in the 2008 average of lb19,364.
As a percentage of the property price, the average deposit for that UK now stands at 16%.
This differs significantly by area, though.
In London, first-timers are parting with a hefty average deposit of lb114,952 (27%). In Wales, it’s just lb16,586 (12%).
|Average first-time buyer (FTB) property price
|Average FTB mortgage
|Average FTB deposit
|Deposit as % of property price
|Yorkshire & The Humber
How would you purchase a house?
While the amount of first-time buyers reaches its highest because the financial crash (175,500 within the first half of 2022), thousands continue to be can not get their foot around the property ladder.
The Halifax research discovered that almost a fifth of 18-34-year olds thought they’d be renting forever, along with a third said they’d simply be able to buy a property when they inherited cash.
This is borne out by separate ONS research showing that 34% of first-time buyers receive financial aid from family.
However, you will find schemes in place to help you purchase a home if you’re struggling.
Schemes to assist first-time buyers
Help to Buy equity loans: if you have the ability to save a 5% deposit, you can borrow an equity loan from the government (40% in London, 20% within the remainder of England and Wales, and 15% in Scotland) and take out a mortgage on the rest.
Shared ownership: with built, you can purchase a share of 25-75% of the property and rent the rest from the housing association. This allows you to pay a smaller deposit at the outset.
Help to Buy Isa: if you save your valuable deposit inside a Assistance to Buy Isa the federal government will top it up by up to 25% when you purchase your first home.
Lifetime Isa: launched recently compared to Help to Buy Isa, this option is perfect for people aged 18-39 saving towards their first home or retirement. If the cash is withdrawn for any other reason you will have to pay a problem.
Your home might be repossessed if you don't continue repayments in your mortgage.