"These rises mean that the prospect of homeownership is becoming more and more distant for most aspiring homeowners"
The report found that the 80% uplift in March transaction numbers has left behind a property drought and price surge:
– 6.2% (+£11,298) monthly jump in price of typical first-time buyer properties
– Strong demand continues in this sector despite withdrawal of many investors following introduction of higher stamp duty taxes, yet new-to-the-market supply is down 1.5% year-on-year
First-time buyer regional hotspots led by Croydon, Dartford and Luton, all with annual surges of over 18%
Jeremy Duncombe, Director, Legal & General Mortgage Club, had this to say: “Whilst some may view these figures as good news, it’s important to remember that these rises mean that the prospect of homeownership is becoming more and more distant for most aspiring homeowners.
We’ve had promise after promise and policy after policy when it comes to tackling the housing crisis, but the simple fact is that these words have not been met by action on the ground. Not only does that mean building thousands more homes across the country, but also making use of our existing housing stock by offering incentives like stamp duty reductions for those looking to downsize.
If the Government and developers continue to procrastinate, this will only exacerbate the current problems that plague our housing market and threaten to price a generation out of homeownership altogether.”
Adrian Whittaker, Sales Director, New Street Mortgages, comments: “These figures from Rightmove show a continued increase in house prices, but it’s important to remember that much of this has been strongly driven by increases in the price of high value properties, and properties in London. Average value properties in the rest of the UK have not seen such strong growth.
The UK property market is comprised of many smaller markets that behave in different ways, and for different reasons. Smart lenders that can react to these differences have a real opportunity to provide added value to borrowers by reflecting these changes”
