UK house price inflation rose from 12.1% in June to 12.4% in July 2007, latest Government figures have shown. The rise in prices was attributed to increases in average prices for detached houses, which rose by 2.4%, alongside bungalows (2.1%), terraced houses (2%) and flat and semi-detached houses (1.7%). However, Northern Ireland saw a decrease in house price inflation, down from 55.9% in June to 46.8% in July. In England annual house price inflation rose from 11.0% in June to 11.5% in July, while in Scotland it was 16.4% compared with 15.6 per cent in June. The figures show hard-pressed first-time buyers were further hit, with house price inflation for those new to the property ladder rising from 12.4% in June to 13.2% in July. The average price paid by first time buyers across the whole of the UK was 167,314 in June, while the average price paid by former owner occupiers was £243,580.
This rise is going to make it even harder for first time buyers to get on the property ladder.
I met with a client yesterday who was in his thirties had a good job and wanted to buy a house. Unfortunatly there was no way he could afford one! He needed to completly re think his budget and settle for a 1-2 bed flat. That is the reality for most first time buyers in todays market, those people who decide to wait the dream of one day owning your own property will move even further away. House prices could increase but up to 20% this year which on a cheap 1 bedroom flat at the bottom end of the market is around £20,000!!!
If your thinking about buying your first home look into the options sooner rather than later.
For more information on buying your first property, the different mortgages available to first time buyers or shared ownership schemes.
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