Average FTB House Price Revealed As £207,693

Side view of a young couple looking at window display at real estate office

It can be very hard for people to take that first step onto the property ladder these days, no doubt because house prices are so high. And new research has just revealed that the average amount that a first-time buyer (FTB) will have to pay for their first property is now at £207,693, the highest on record so far.

The Halifax First Time Buyer Review has found that although growth in FTBs has slowed to three per cent compared to a hike of ten per cent seen last year, the number of homeowners taking their first step on the property ladder has risen from 154,200 for the first six months of 2016 to hit 162,704 for the same period this year.

Interestingly, FTBs are also helping to drive housing activity, with nearly half of all house purchases financed by a mortgage made by this demographic.

Of course, it depends on what part of the UK you want to live in as to how much you’ll end up paying on average for your first property. In Brent in London, for example, the average FTB property price is 12.5 times the gross average annual earnings in the area at £459,499. The top ten least affordable local authority districts for FTBs were revealed as Brent, Lambeth, Haringey, Camden, Hackney, Waltham Forest, Newham, Harrow, Ealing and Southwark – all in London, perhaps unsurprisingly.

The most affordable districts were revealed as being Stirling, Inverclyde, Renfrewshire, Copeland, West Dunbartonshire, East Ayrshire, Pendle, North Ayrshire, North Lanarkshire and Lisburn and Castlereagh.

“Although the number of first-time buyers grew at a slower rate in the first half of the year compared to 2016 the levels remain healthy and the market is achieving record average house price for first-time buyers.

“For the third time in four years the numbers getting on the housing ladder have exceeded 150,000 – a level of momentum not seen since before the financial crisis.

“High levels of employment, low mortgage rates and government schemes such as Help to Buy have also helped these numbers remain robust, as first-time buyers continue to form a fundamental part of the UK housing market,” housing economist with Halifax Martin Ellis said.

While this all sounds like very good news, further research from Halifax published back in March found that 48 per cent of young Brits believe it to be harder than ever to get on the property ladder now, with one in ten thinking about leaving the UK in order to purchase their first home.

A quarter of 18 to 34-year-olds think that they only way they’ll ever buy their first house in this country is by inheriting the money to do so, with 14 per cent believing that they’ll have to rent forever. While it might feel like this is the case, bear in mind that FTBs are typically £651 a year better off if they buy than if they rent – so trying to get the deposit together for a timber frame house could well prove to be an excellent idea.


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