First-time buyer house prices soar over past decade – although not everywhere

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
North	lb126,685	lb107,682	lb19,003	15%
Yorkshire & The Humber	lb140,766	lb119,651	lb21,115	15%
North West	lb148,055	lb125,847	lb22,208	15%
East Midlands	lb163,218	lb138,393	lb24,825	15%
West Midlands	lb168,519	lb142,618	lb25,901	15%
East Anglia	lb210,639	lb171,723	lb38,915	18%
Wales	lb140,201	lb123,615	lb16,586	12%
South West	lb207,329	lb169,958	lb37,371	18%
South East	lb275,632	lb222,711	lb52,921	19%
Greater London	lb419,608	lb304,656	lb114,952	27%
Northern Ireland	lb124,035	lb105,429	lb18,605	15%
Scotland	lb139,318	lb118,712	lb20,605	15%
UK	lb208,741	lb175,614	lb33,127	16%

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.