Asking price: first-time buyers paying almost 8% above
First-time buyers are paying almost eight percent more than the asking price to secure their first home. That’s according to data from estate agent Yopa which looked average asking prices against average sold prices for properties bought by first-time buyers.
The average asking price for a first-time buyer home in the country, Rightmove says, is £227,570. But the UK House Price Index revealed that the average it sells for is £245,208, an increase of 7.8% over the original asking price.
This is despite the fact that first-time buyers offer a great prospect for sellers, due to them having nothing to sell and there being no chance of a collapse that affects the sale. The numbers therefore suggest that there is a scarcity of first-time buyer properties compared with the rest of the market, as well as a great deal of competition.
“These findings highlight the challenges first-time buyers are facing in today’s highly competitive housing market. On average, buyers are paying an additional £17,638 to secure their first home, which reflects the strong demand for more affordable homes and the pressure inexperienced buyers may feel to offer more,” explains Jonathan Bone, Head of Mortgages at Better.co.uk.
“This emphasises the critical importance of financial preparation and strategic planning for those looking to get on the real estate ladder.”
In the capital, a first-time buyer can be expected to pay over double the national average, the data found. A starter home in London costs an average of £506,706. Bettter.co.uk had 85 first0time buyer mortgage applications for Tower Hamlets and Hackney, with £70,500 being the median deposit and the median value being £435,000.
Westminster, and Kensington and Chelsea had 77 applications with the median for deposits being £95,750 and the median value being £500,000. Southwark had 71 applications for first-time buyers with the median deposit being £72,643 and the median value being £401,000.
Haringey, Newham, and Barking were the least popular for first-time buyers in London.
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