Guest post: How have rising property prices affected first time buyers?
According to official figures, the prices of houses in the North West of England have continued to grow, every year, for the last five years. This rise has accumulated to almost an added 20% on the top of residential property prices.
Unsurprisingly, this rise has affected first time buyers, more so than existing homeowners, making it more difficult than ever for them to get onto the property ladder, without third party assistance.
According to established accountancy firm KPMG, the average first time buyer needs to be earning above £26,000 to be able to afford to save enough money for a deposit on a new home. However, the average salary in the North West, sits much lower at £20,500.
Government schemes such as “Help to Buy”, have assisted potential homeowners get onto the property ladder; allowing them to buy a home with only a 5% deposit.
But how has this affected the number of first time buyers?
The infographic below shows surprising figures on the percentages of homes that have been bought by first time buyers in the North West over the last 12 months.
About Gorvins Solicitors
If you would like to find out more information about residential property or conveyancing, then please visit the Gorvins website, where you will find a number of helpful resources, including an interactive first time buyers guide.