FTB houses are 28% cheaper than average houses

Michael Lloyd

September 5, 2019

The current average first-time buyer house price is 28% cheaper than the price paid by former occupiers, estate agent comparison site GetAgent has found.

The average first-time buyer house price is £193,701, while the average price paid by former owner-occupiers is £268,119.

Colby Short, founder and chief executive of GetAgent, said: “Of course, first-time buyers are always going to pay less, generally due to the size of the property and the fact they are a lot more willing to compromise on location and other property features in order to get that first foot on the ladder.

“But first-time buyer value isn’t just about the overall price tag of a home, it’s also how relatively affordable it is when compared to the wider area and while a £400,000 home may seem steep for first-time buyers in some areas of Great Britain, in the likes of South Bucks and Elmbridge it represents good value for money.

“Of course, schemes such as Help to Buy have provided a leg up for many but the inadvertent consequence of fuelling demand without addressing supply is that Help to Buy prices have actually shot up.

“So while there are many areas where a healthy gap can still be found, this isn’t the case across the board with some paying just 10% less than wider market value.”

In England, first-time buyers are currently paying 27% less than those already on the ladder, with this gap marginally smaller in Wales at 26%, but the highest in Scotland at 31%.

The best area for relative first-time buyer affordability compared to the wider market is in South Bucks, where the average first-time buyers is currently paying £392,277 to get on the ladder, compared to £688,749 across the rest of the market. This is the highest gap in Great Britain at -43%.

Elmbridge in Surrey ranks second when it comes to the gap between the price being paid by first-time buyers and the rest of the market.

At £396,225, the average first-time buyer is paying 42% less than other buyers in Elmbridge.

London commuter town Woking also ranks high with a gap of 42% between the price paid by first-time buyerss and former owner-occupiers.

This was followed by Mole Valley (38%), Surrey Heath (38%), Horsham (37%), Wycombe (37%), Waverley (37%), Clackmannanshire (37%) and Epping Forest (37%).

In addition to Clackmannanshire, East Dunbartonshire (36%) and Perth and Kinross (36%) offer some of the best first-time buyer value in Scotland.

Monmouthshire is home to the biggest gap in Wales at 33%, followed by Vale of Glamorgan (27%) and Newport (27%).

In London, Bromley (30%), Richmond (30%) and Croydon (29%) are home to the biggest gap between first-time buyer house prices and the wider market.

Meanwhile the City of London is the only area in Great Britain to see first-time buyers pay more at present, with a 3% difference between first-time buyer house prices and the wider market.

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