Almost half of all house purchases in the first half of 2017 were made by first-time buyers. And according to new figures from the Halifax, those first-time buyers are having to find an average deposit of almost £33,000 with London first-timers asked to fork out more than £100,000.
In its First-Time Buyer Review, Halifax revealed that the average price paid for a first home has reached a record £207,693 with first-time buyers having to find 16 percent of that as a deposit, or £32,899.
The Halifax research exposes the sharp differences in property prices across the UK. Those climbing on to the housing ladder for the first time in London need a six-figure deposit that’s around 26 percent of the average house price, a whopping £106,577.
Compare that to Northern Ireland where a first-time buyer deposit is just £16,457 on average or Wales at £17,193. In Scotland, the tally is £21,5656.
Huge disparity in property prices across UK
The London borough of Brent is the least affordable place to buy for first-time buyers with the average cost of a first home there 12.5 times local average earnings at £459,499. For the most affordable place, buyers need to look north to the town of Stirling in central Scotland where a first home will cost £136,181, 2.9 times local average income.
Outside of London, the south-east is the region where first-time buyers will need the biggest deposit and pay the highest average price for a home – £50,144, or 18 percent of a purchase price of £409,795.
According to the Halifax figures, there were around 162,704 buyers sealing a deal for their first home in the first six months of 2017. Help-to-buy schemes are credited with increasing the number of first-time buyers entering the market, with the Halifax saying the proportion has risen by 44 percent since 2013 when help-to-buy was launched.
The cost of property is also pushing the length of a typical mortgage from the more common 25 years to up to 35 years for more than half of those buying for the first time.
One call to get conveyancing underway
However you get your deposit together, whether first-time buyer or seasoned homebuyer and seller, Fridaysmove can ease your passage through the conveyancing process. Our panel of solicitors covers England and Wales, and the price our sales team quotes you is the price you are guaranteed to pay – no hidden extras lurking as an unpleasant surprise plus you won’t be out of pocket if for some reason your transaction doesn’t complete, thanks to our no-completion, no-fee guarantee.
Our sales team are available seven days a week. Call 0800 038 6446 now to get the ball rolling on your move or get a no-obligation quote on conveyancing or property surveys here.