Ah, the dream of owning your first home! But for today’s first-time buyers, it’s more like a game of Monopoly with the odds stacked against them.
Recent research by mortgage broker Alexander Hall reveals that navigating this property market is akin to a Herculean task, with high mortgage rates and a scarcity of affordable homes.
Let’s break it down: the average first-time buyer in Great Britain is eyeing properties priced around £244,519. With a 15% deposit, that leaves them needing a mortgage of £207,841. But here’s the kicker: mortgage rates have climbed to an average of 4.57%, pushing monthly repayments to £1,164. That's a £79 leap from last year!
And the plot thickens. Out of 436,839 properties currently for sale, only a third are within the financial reach of first-time buyers. London, unsurprisingly, tops the chart with an average first-time buyer price of £444,548. Yet, it’s the West Midlands that offers the least affordable options, with just 27% of homes priced within reach.
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On the brighter side, the North East shines as a beacon of hope, boasting the highest percentage of affordable listings at 37%. But don’t pop the champagne just yet—Stephanie Daley from Alexander Hall warns that the journey to homeownership is tougher than ever, with prices skyrocketing by 52% over the past decade.
So, what’s the takeaway? First-time buyers need to channel their inner strategists, armed with patience and perhaps a touch of luck, to secure that elusive first home. Good luck out there, property pioneers!
Want to hear more? Join Mal on the Property AI Report Podcast each week!
Access from your preferred podcast provider by clicking here
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