Property in: LONDON
FTB Home Prices Against Wider Markets: a Comparison

FTB Home Prices Against Wider Markets: a Comparison

by Kos
2 minutes

We analyse the latest data on average home prices paid by first-timers and compare them to the wider market averages.

Home values across the country have changed significantly over the past few years, including prices paid by first-time property buyers (FTBs). However, the gaps can vary depending on the area of a home purchase.

Average FTB Home Values

On average, a typical first-timer pays £245k when securing a new home, 29% below the national average of £345k. Interestingly, price growth levels (last five years) for FTB homes are in line with the wider market (30% against 33%).

Unsurprisingly, London homes have the highest average price paid by FTBs (£466k). But there are areas where relative affordability is much worse when comparing FTB values to wider markets.

Average FTB values in Yorkshire and the Humber sit at £181k, the lowest number in Britain. However, the area represents the smallest gap between prices paid by first-timers and regular buyers (24%). In fact, FTB house prices in Yorkshire and the Humber rise in line with the wider market (35% growth over the past five years).

Moreover, at least 8 areas in Britain recorded prices paid by FTBs rising faster than average values in regular markets, suggesting challenging settings for new buyers.

Experts Say

Many specialists confirm rapidly rising house prices throughout the pandemic, including first-timer markets. Arguably, the current market state represents the most challenging settings for FTBs.

The average price of a first home differs from one area to the other, but this cost is relative to the average income in the areas. In other words, FTB settings are challenging across almost all regions regardless of average prices.

However, first-timers take advantage of several government-backed schemes like Shared Ownership, Mortgage Guarantee Scheme, and First Homes. In addition, there is the Save to Buy scheme launched by Fairview available in London, with more initiatives expected to launch later in 2023.

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