First-time buy­ers en­dure 69pc price leap in tough mar­ket

The Daily Telegraph - Business - - Business -

THE cost of pur­chas­ing a first home has in­creased by more than two thirds in the last decade, with young peo­ple try­ing to get on to the lad­der to­day fac­ing sig­nif­i­cantly higher hur­dles.

Re­search from Hal­i­fax showed that the typ­i­cal first-time buyer pur­chase price had grown from £142,473 in 2010 to £241,025 to­day, a rise of 69pc. The av­er­age house price has only risen 33pc over the same pe­riod.

First-time buy­ers have faced mul­ti­ple is­sues dur­ing 2020. The prop­erty mar­ket was closed for months dur­ing the coro­n­avirus lock­down, putting po­ten­tial pur­chases at risk.

Hun­dreds of mort­gages for young buy­ers were with­drawn and now house prices have started to spike.

The Gov­ern­ment’s stamp duty tax give­away has re­stored con­fi­dence to the mar­ket but first-time buy­ers, who al­ready en­joyed a tax break, have seen their com­pet­i­tive ad­van­tage dis­ap­pear.

Mort­gage avail­abil­ity re­mains poor and the num­ber of first-time buy­ers has now fallen to a seven-year low, ac­cord­ing to Hal­i­fax.

By Adam Wil­liams

The typ­i­cal first-time buyer now faces a pur­chase price of £241,025, ac­cord­ing to Hal­i­fax

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