Recent statistics have shown that property prices have increased by 181% since the turn of this century, wages on the other hand have not kept pace with property inflation, and as a consequence new research has shown that first time buyers who are able to buy a property has fallen by 27%.
According to the ONS, Office for National Statistics on average house prices have increased by 7% per year since 1980 with 1988 having the greatest increase in house prices, 25.6%. Property sales stood at 1.67 million at their peak in 2006, down to 0.85 million after the economic crises, however they had almost recovered by 2015 when there were 1.23 million properties sold.
The purchase deposit amount between 1988 and its peak in 2009 almost doubled which meant that many first time buyers where unable to save up enough to buy a house, with the average deposit needed for a first time buyer stands at £22,689 according to research by Hatched.
The average first time buyer will have to pay £211,000 on average for their first time home in 2017 to compared £75,000 they would have paid in 2000 which is why first time buyers have fallen so dramatically in recent years.
All of this has had an impact on the age of when a first time buyer could get onto a property ladder, in 1991, 67% of 25-34 were homeowners, but by the end of 2014 this figure had reduced to 36%.
Various Government run schemes such as the Help to Buy equity loan has according to the BBC has helped over 100,000 people buy a new home.
If you are a first time buyer looking to get on the property ladder Goodfellows currently has these apartments that are available under the scheme:
Studio, 1 and 2 bedroom apartments available off plan now at Eton Court, Cheam, by luxury new homes developer, Montreaux. Located in the centre of Cheam Village with access to all amenities on the doorstep, this development is perfectly situated for commuters, down-sizers and would make a very attractive investment. Contact our New Homes team for more information on 0208 652 2929.
- Flat 6
- HELP TO BUY AVAILABLE
- Luxury Conversion Apartments
- Village Location
- Minutes From Train Station
- By Montreaux Ltd
- RESERVE NOW
Find out more about the Help to Buy scheme by following this link.