Price shock for first-time buyers

 

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 https://www.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.

https://www.buyassociation.co.uk/2016/09/14/uk-property-market-insights-buy-let-millionaire/

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.

Shipside said:

“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.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Price shock for first-time buyers

Price shock for first-time buyers

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.