Brexit concerns have not dented first-time buyers’ appetite to own their own home, according to estate agents Your Move and Reeds Rains.
With many would-be buyers still wanting to get a foot on the housing ladder, the average asking price of a typical first-time buyer home in England and Wales hit an all-time high in May, new figures show.
The latest data from the Your Move House Price Index reveals that May saw first-time buyers pay an average of £173,282 to get a foot onto the housing ladder, up 2.7% from £168,656 in April and 15.8% more than the average of £149,645 seen in May 2015. The increase means that first-time buyer property prices have now surged by more than £23,000 in the last 12 months.
But home prices did dip in May by 0.4% month-on-month, in anticipation of the EU referendum on 23 June.
Completed first-time buyer sales totalled 24,900 in May, just 0.8% lower than the 25,100 seen in April, even as first-time buyers were held back by a lack of homes on the market ahead of the EU referendum. The overarching trend remains strong, with first-time buyer numbers 13.2% higher than the 22,000 seen in February and 5.1% higher than a year ago.
Despite uncertainty in the UK economy, Adrian Gill, director of Your Move and Reeds Rains, reports that many first-time buyers still want to capitalise on the record low mortgage rates available at the moment.
He commented: “The Brexit result won’t change the fact that huge numbers of aspiring first-timers want to buy a first home, and lots won’t want to wait out the two years until the renegotiations over the EU have been completed.”
“In the short-term, the wider market wobbles may benefit first-timers, giving them the leverage to negotiate harder and get a good deal on purchase price. Canny first-timers will use any Brexit-lull as a chance to snap up a good deal and get on the housing ladder.”
Region
|
Average Purchase Price
|
Average deposit
|
Average mortgage
|
Number of FTBs*
|
London
|
£338,074
|
£84,138
|
£253,936
|
11,700
|
South East
|
£229,828
|
£42,002
|
£187,826
|
15,300
|
South West
|
£165,068
|
£28,729
|
£136,339
|
6,100
|
East of England
|
£161,088
|
£31,585
|
£129,503
|
2,600
|
UK
|
£154,886
|
£27,009
|
£127,878
|
77,700
|
East Midlands
|
£139,250
|
£21,138
|
£118,112
|
5,800
|
West Midlands
|
£137,731
|
£20,695
|
£117,036
|
6,600
|
North West
|
£123,830
|
£18,533
|
£105,297
|
8,200
|
Yorkshire & Humber
|
£120,010
|
£19,510
|
£100,500
|
6,200
|
Wales
|
£114,544
|
£16,574
|
£97,970
|
3,200
|
Scotland
|
£113,448
|
£15,859
|
£97,589
|
6,800
|
Northern Ireland
|
£106,504
|
£20,223
|
£86,280
|
1,900
|
North East
|
£106,022
|
£16,990
|
£89,033
|
3,300
|
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment