The latest Rightmove house price poll revealed that prices for starter properties like two-bed flats went up 10% in the last 12 months, despite Brexit worries.
All hopes of first-time buyers to snap up a cheap property post-Brexit could be crushed once more after new figures showed that sellers are now asking for 3.3% more for typical starter homes in England and Wales than they did in August.
In its latest monthly report, Rightmove showed that asking prices for newly listed homes went up 0.7% in September compared to August. This however only masks a more significant development. In August, sellers asked for an average of £188,237 for traditional starter properties (two bedrooms or fewer). This price went up to £194,477 this month.
“The rising tide of prices is marooning more and more first-time buyers, out-stripping their ability to meet stricter lending criteria and afford the required deposits and monthly repayments,” said Miles Shipside, director at Rightmove.
“Increasing numbers are being cut off from home ownership altogether and while schemes are in place to help, the additional demand they create is not matched by available and affordable supply.”
Sellers’ confidence appears to have grown across to whole market http://buyassociation.co.uk/2016/09/16/find-investment-winner-uk-property/ over the past 12 months with first-time buyers experiencing the biggest price inflation.
Rightmove’s figures showed that asking prices across all properties increased by 4% when compared to September 2015, first-time buyer homes, however, are now being priced 10.5% higher.
“While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath.”