Another month, another housing story. And this time it’s all focused on first time buyers.
First time buyers have long been hailed as the stilts that hold up the market. On the hunt for great starter homes that generally boast one or two bedrooms, they are one of the most relied upon groups in the sector. Generally they know exactly what they are going to get in terms of both house size and price, but according to the latest figures, first time buyers have been hit hardest over the last few months due to a sharp increase in asking prices.
It’s been well-documented that asking prices have stayed steady since the Brexit vote, yet recent figures have highlighted that the prices of one and two bedroom homes have instead bucked this stagnant trend and rocketed – leaving many first time buyers even further away from owning their own home. But I Am The Agent, one of the UK’s leading online estate agents, has advised first time buyers – whatever their age – not go be too downhearted by these such differing values and continue aiming for homeownership.
Rebecca Peach, Managing Director at I Am The Agent, said, “First time buyers have been credited with keeping the property market afloat since the tax increases for investors and Brexit, so it’s not really a surprise that the demand has caused one and two bedroom houses to increase in price significantly. Although great news for the industry as a whole as it has helped to plump it out during an uneasy time, those looking to get on the market are left feeling a little less optimistic. However it’s important that they don’t give up on owning their own house altogether as there are still options available to them.”
Over the last 12 months, the average asking price has increased by 4.5%, yet homes with one and two bedrooms, which are prime for first time buyers, have shot up by 8.2%. The most up to date , from June, show that the average cost of a first-time buyer home hit £161,912, which was at the time the highest level seen in 2016. However with this new revelation, an increase of just a couple of percent could potentially price first timers out by making deposits harder to get and of course mortgages more costly.
Rebecca, adds, “It really is difficult for first time buyers get their feet on the ladder. Rising rents are making it harder for them to save, but the longer they wait, the more house prices are increasing. Those feeling down about the process should look at alternatives, such as shared ownership schemes or explore the option of buying with a friend in order to cut costs. We also cannot emphasise enough the importance of making sure they compromise, as in this fast-paced yet pricey market, they are very unlikely to get everything on their wish list.”
The agent has also suggested that this news is almost certain to spark the government into action, so new schemes and incentives could well be on the way to help first time buyers get out of the renting trap.
Those looking to make a move can browse hundreds of homes for sale all over the country on I Am The Agent’s website. And as always, the customer-focussed team are on hand to assist in every way.
