Living Costs Rise Faster Than House Prices
House prices are hitting new records, but increasing costs of living are the central concern for current property buyers in the UK, data by Stipendium reveals.
Property prices are rising: Land Registry reports an almost 11% increase in house values in 2021. This represents more than a £4,000 spike for an average deposit of 15% in just 12 months.
This trend hits first-time buyers the most, making an already challenging prospect of homeownership even more complex.
What Does The Research Say
What’s interesting, data by Stipendium reveals the recent spikes in living costs as the prime factor affecting first-time buyers’ abilities to save for new homes.
The researchers also found that the energy bill threshold increased by 73% in 2021 and hit £1,971 per year. It means an £833 increase from £1,138 in just 12 months.
What’s more, fuel costs spiked by 29% for petrol and 36% for diesel. It means that we are paying an extra £0.36 and £0.47 per litre of fuel now.
Comment By Stipendium
Stipendium says that the trend of energy and fuel bills outperforming house price growth reflects how fast living costs are actually rising. And that is with heated activity in the property market throughout the pandemic.
Undoubtedly, the nominal values of increasing house prices are higher. However, these trends still reflect how challenging it has become to own a home, particularly for those first-timers who have little to back up their purchase, like a property to sell.
Moreover, rental costs are likewise rising, along with deposits for buying a new home. And the abilities to save are being further squeezed by recent spikes in costs of living.