Demand for properties from first time buyers on the rise
Demand for housing from first time buyers is on the rise, according to new research.
The study, by estate agents haart, also revealed that the average UK house price increased by 0.9 % in October, with the average has price now at £191,343 – a staggering 115% year-on-year increase.
The report revealed that the average price paid by first time buyers increased by 3.2% month-on-month and 6.1% annually to £152,593.
Haart attribute the spike in interest to the governments Help to Buy scheme, which is allowing prospective buyers to get on the ladder with as little as a 5% deposit.
The agents recorded a 92% rise in enquires from first time buyers in the first few weeks of October compared with the same period of 2012.
However, many housing developers have admitted that they are finding it difficult to keep up with the demand, with the amount of new properties being built dropping by 2%.
Paul Smith, chief executive officer of haart said: “Our message to potential sellers is sell, sell, sell as we just can’t get enough stock. Demand for first homes, in particular, is overwhelming and the supply is still extremely limited which is why the average price of such properties is up 6.1 per cent annually.
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