<< Most Recent Articles

First-time buyers look back on bleak 2006

Last year was officially one of the worst yet for the fortunes of first-time buyers (FTB), figures confirm.

The average FTB home breached the £150,000 mark for the first time, with the number of FTBs getting on the property ladder now at its lowest level since 1980.

Halifax has combined their data for 2006 with statistics from the Council of Mortgage Lenders, Office for National Statistics and Department for Communities and Local Government, to uncover the financial realities faced by FTBs.

Tim Crawford, group economist at Halifax, commented: "First time buyers continue to struggle to climb onto the property ladder with the average house price paid by a new buyer entering the market now above £150,000."

The average price of a FTB property has nearly doubled in the past five years, with no region now boasting average prices below £100,000; five years ago, average house prices for FTBs were below this in all regions apart from London and the south-east.

Londoners continue to be the worst hit by rising property prices, with the average FTB property in the capital now costing more than £250,000 for the first time, placing it above the three per cent stamp duty threshold, meaning FTBs face a bill of £7,500.

Just three out of ten new mortgages taken out in 2006 were held by FTBs, down from two in five in 2001. This fall has been combined with rising deposits, with the average deposit double what it was five years ago at £28,130.

Mr Crawford warned: "First time buyer affordability is now an issue across the UK."

For help buying your first home, click here to see how much you could borrow with Lombard Direct.

02/01/2007 09:15:06

Most Recent Articles