Last Updated: 12/03/2016 14:52:16 Tags: First-Time-Buyers-Demand-Drive-Up-Property-Prices
This is said to be the year of the first-time buyer - as a combination of Government initiatives and low interest rates have made it so much more interesting for first-time buyers to invest into the housing market.
Previously the lack of property coming onto the market place has hampered transactions, but according to a new report, new properties coming onto the market this year have increased by 5% compared to this time last year.
A new report from the ARLA, Association of Residential Letting Agents – has show that people looking to buy a first home would have spent on average £50,000 renting since moving out of their family home, so it’s easy to see why they are to secure their own home.
These figures are based on someone moving out of their home at age 18 and renting for 13 years, they state that in the North East first time buyers are likely to have spent £32,000 on rent before they buy whereas in London they are more likely to have spent £68,000 on rent.Figures also show that UK tenants spent an average of 22% of their wages on rent last year.
David Cox, managing director of Arla, said: “The rising cost of rent in this country is a huge issue, and is preventing tenants from being able to save to buy a home.
“As house price affordability worsens and interest rates start rising, more pressure will be put on renting with weekly rent likely to rise, so homeownership will remain out of reach for many.”
If you are looking to buy your first property why not pop into your local branch of Goodfellows or call our team on 0208 946100.
Source: The Guardian