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For those of you, like myself, who are trying to get on the property ladder, it’s worth taking note of another alarming (for us, anyway) trend. The average house price has risen by a whopping £15k. This is great if you are on the property ladder already but, for first time buyers, the picture is not quite so rosy.
The average home price increased by up to £15,000 in 2016 to hit £220,000, with an average inflation of 7.2% in December, according to the Office of National Statistics. We instantly assume that this average will have been pushed up by ‘crazy London house prices’ but actually, house prices are up across the UK. England prices are up by 7.7%, Wales by 4.7%, Scotland 3.5% and Northern Ireland by 5.7%.
I’ve spoken to many older parents who are quick to point out that, in their generation, it was normal and relatively easy to buy a house young. Why should their children not have the same?
It feels like yet another obstacle on the road to owning my own home. Assuming that you need a 10% deposit, that’s £22k minimum that you’re aiming to save up, and that’s not including all the other costs involved in buying a home! If you are renting, how are you meant to save that much money in a reasonable amount of time? Some first-time buyers are clearly finding a way around it. According to thisismoney.co.uk, the number of first-time buyers was up by 13% in 2016, borrowing a staggering £53.2bn in mortgages. It would be really interesting to know how people are getting together a good deposit. Is it hard graft saving? Are they exceptionally rich professionals? Is it through the bank of mum and dad?
It’s probably a mixture of all three, but my gut instinct is that this will be swayed towards parents dipping into their equity, savings or pensions to help out. I’ve spoken to many older parents who are quick to point out that, in their generation, it was normal and relatively easy to buy a house young. Why should their children not have the same? I’d love to know what happened in the last 25 years (or so) to make it so difficult. Whether it was the recession, property prices or something else, a change has now got to be made to stop this nonsense. Answers on a postcard please!
West Midlands lass blogging her way through newfound motherhood and trying to get on the housing ladder in the smoothest way possible. Leanne also writes for ‘Money and the Mum’.