Soaring price of first-time buyer homes outstrip wages
The average first-time buyer home across Britain has increased in price by approaching £9,000 a year for the past decade.
First-time buyers are now facing an average cost of £225,607, up from £138,973 just a decade ago according to MoveStreets.
That’s a 62 per cent increase meaning that the average first-time buyer has seen the cost of a home increase by £8,663 per year on average since 2011.
Across London, the average first-time buyer now pays £437,511 to get a foot on the ladder, a cost that has increased by £18,134 per year over the last 10 years. First-time buyers in the South East (£12,043) and the East of England (£11,206) have also seen the cost of their first home jump by more than £10,000 a year since 2011.
Even in the North East, where property prices have increased at the slowest rate, the average first-time buyer house price has climbed by £3,301 per year over the last decade.
At local authority level, the largest annual increases in the cost of first-time buyer homes have been in Kensington and Chelsea (£38,459), Hackney (£30,845) and Hammersmith and Fulham (£29,648), while outside of the capital Hertsmere (£19,581), Cambridge (£18,309) and Elmbridge (£17,534) have seen some of the largest annual jumps.
Adam Kamani, chief executive of MoveStreets, says:
“While we’ve come to expect that property prices are likely to climb due to the government’s failure in providing enough new affordable homes, it really does put it into perspective when looking at how much they’ve increased in the last decade.
“To think that in a single year, the average first-time buyer property will cost a further £8,663 when compared to the previous year is quite amazing and it’s a wonder so many struggle to buy in the current climate.
“Let’s not forget this is only first-time buyer properties we’re talking about here, which should essentially be the most affordable on the market in any given location.”
Kindly shared by Estate Agent Today
Main photo courtesy of Pixabay
