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Property News > Average price paid by a first time buyer in the UK reaches new record
Average price paid by a first time buyer in the UK reaches new record
It was recently revealed that apprehension among first time buyers it an all time high will those looking to move onto the property ladder feeling like they are unable to do so. And now it seems as though those worries may be justified as the average price paid by a first time buyer in the UK reaches a new record. The number of first time buyers in the UK reached approximately 162,704 in the first six months of 2017, just 15% below the peak of the last boom nine years ago, back in 2006.The average price paid by a first time buyer was £207,693, however in London, this figure jumped to £410,000, the highest on record. Research also indicated that the growth in first time buyers slowed to just 3%, compared to a 10% increase in 2016. The number of homeowners stepping onto the property ladder for the first time is up from 154,200 during the same period of 2016 and more than double the market low recorded in the first half of 2009. Ten years ago, some 36% of all houses purchased and financed by a mortgage were made by first time buyers, however, in 2017, that figure is estimated to be around the 47% mark, almost half. The share was an increase from 44% following the launch of the Help to Buy scheme back in April 2013. However, simultaneously, the home mover market experienced a slow down and housing activity was dependant on first time buyers. Whilst the number of first time buyers during the first half of 2017 grew at a slower rate compared to last year, the levels remain healthy and the market continues to achieve record house price averages for first time buyers.Now, for the third time since 2013, the numbers of those moving into the house market have exceeded 150,000, a level of momentum that has not been seen since before the credit crunch. Factors such as high levels of employment, low mortgage rates and government schemes such as Help to Buy have helped to strength numbers and first time buyers continue to be a fundamental part of the UK property market. During the first half of 2017, the average house price paid by first time buyers was some £207,693. The average value of a typical first time buyer home was grew around 4% in the last year, up from £199,414. Over the past five years, the average price has grown by as much as 50% from £138,663 to £207,693, a total of £69,025. This movement comfortably outperformed price growth across the entire market of 42%. However, in the capital, first time buyers have experienced an average price increase on a more astronomical scale at 66% since 2012. This is a jump of £163,664 to £409,975, the highest on record. That average price is some three and a half times higher than in Northern Ireland, where the average is £115,269 but also 48% higher than the second most expensive region, the South East at £276,773.For a first time buyer deposit, the average figure was around £32,899 during the first half of 2016, totalling 16% of the purchase price. In London, the average first time buyer deposit was more than three times the national average of £106,577, whilst Northern Ireland it is half the UK average at just £16,457.Four regions to have seen the average deposit at least double are found in southern England. In London, the average deposit by first time buyers has jumped four-fold in the past ten years from just £26,701 to sizeable £100,445, a total increase of 276%. As house prices for first time buyer properties continue rise, there is also a growing trend in longer mortgage terms than the more traditional 25-year term.