Photo by The Sobering Reality of First-Time Homebuyers in the UK
As the UK housing market continues to evolve, first-time homebuyers are facing a daunting reality. According to recent analysis, the average first-time buyer mortgage payment has risen by a staggering 61% since 2019, from £667 to £1,075 per month. This significant increase is attributed to rising house prices and mortgage rates.
Average mortgage rates in the UK have skyrocketed.
To put this into perspective, the average asking price for a first-time buyer home has jumped by nearly a fifth (19%) since 2019, with prices now reaching a whopping £227,757. In the North West of England, asking prices have risen by a third (33%), while London has seen the smallest percentage rise of just 6% over the past five years.
Rising mortgage rates and house prices have had a compound effect on monthly mortgage costs. With the Bank of England base rate remaining on hold, many are hoping for a rate cut on the horizon. However, until then, first-time buyers are being forced to get creative.
First-time buyers are struggling to get onto the property ladder.
Some are opting to extend their mortgage terms to 30 or 35 years, while others are looking at cheaper homes to reduce their borrowing needs. It’s a difficult time for those trying to take their first step onto the property ladder.
The next government has a lot on its plate when it comes to addressing the housing crisis. According to Zoopla, building more affordable homes, tackling homelessness and rough sleeping, and reducing the number of empty homes are top priorities for the next government. Helping first-time buyers onto the property ladder and controlling rent rises in the private sector round out the top five priorities.
Tackling homelessness and rough sleeping is high on the agenda.
It’s clear that the housing market is a complex issue, and one that requires a multifaceted approach. As voters, we must demand more from our government to address the struggles faced by first-time buyers.
In the meantime, it’s essential for first-time buyers to stay informed and adaptable in this ever-changing market. By staying up-to-date on the latest trends and priorities, we can work together to create a more affordable and accessible housing market for all.
