Latest News and Updates House prices for first-time buyers rise six times as fast
House prices for first-time buyers rise six times as fast
The cost of an average home for a first-time buyer rose by 3.9 per cent in November compared with a decline of 0.7 per cent for those already on the property ladder, according to the latest house price index from Communities and Local Government.
Experts attributed the rise in prices to the Stamp Duty threshold being raised to £175,000 last year, which prompting more buyers into the market. The threshold has since been lowered to £125,000.
Nick Leeming, of property website Zoopla, said: “There is no other reason except the rise in the Stamp Duty threshold. It is the only external factor to explain it.”
Overall, house prices were 0.6 per cent higher than in November 2008 and 0.7 per cent higher than in October 2009.
Jonathan Moore, director of www.easyroommate.co.uk said: “A lot of first-time buyers missed out on the cheapest house prices because they couldn’t get mortgages, and missed out on the stamp duty holiday as a result.
“Now it’s becoming trickier for young buyers to get a foot on the property ladder. We are yet to see lenders consistently offer first-time buyers realistic loan-to-value mortgages at cheap enough rates. This situation is only going to get worse as house prices continue to rise and larger mortgages are needed.”
A Communities and Local Government spokesperson said: "The Government continues to take unprecedented action to support first-time buyers aspiring to enter the market by increasing opportunities to buy a share of a home."
Source:telegraph.co.uk
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