Demand for homes is outpacing supply and this is causing house prices to rise to record levels. According to a report released by Shelter last year the average house cost nationally for a first time buyer (FTB) was £198,039.
Webuyanyhouse.co.uk compared this to the latest national property values from the Halifax House Price Index, which puts the average house price at £212,430. The figures show that poor FTBs don’t get a great deal when they’re trying to climb onto the property ladder.
Shelter’s report also states the average salary of a FTB to be in the region of £47, 574. According to the most recent Office for National Statistics (ONS) report, the average salary in the UK for 2015 is £27,607 – almost £20,000 short of the average FTB salary. This means having to save for longer to get a deposit for a house together.
Are people – not just FTBs – being priced out of the market? And what can potential buyers do to help get on the property ladder?
Many high street banks have introduced new accounts designed to help FTBs save deposits at a much quicker rate. While this doesn’t benefit those already on the property ladder, making it easier for new buyers to enter the market can help sell houses faster.
The housing situation seems worse in England than the rest of the UK. According to Shelter’s findings, a family with one child could have to save for a deposit for up to 12 years to buy an average-sized family home in their area.
What’s Being Done To Help?
The government’s Help To Buy scheme and reduced stamp duty on cheaper homes does help to make access to property easier: reducing some of the upfront costs makes it easier to get on the first rung of the property ladder.
Despite the problems like deposits and a lack of affordable homes, there is increased demand for property. Though due to higher demand pushing house prices up, it can be harder to not only buy a home but also sell one.
If you need to move house quickly, using a service like We Buy Any House can help get the process moving quicker.
We handle the sale of your home giving you one less thing to worry about.
For more information take a look at how our house buying process works.Back to all articles