The number of people buying a home for the first time increased to a 7 year high in 2014, despite prices rising by an average of 9%.
The Halifax First Time Buyer Review charts a 22% rise in those purchasing their first property. It marked the highest level since before the financial crisis as average prices rose to £172,000. The report noted that the average cost of a deposit for first-time buyers fell by 7% in 2014 to below £30,000, helped by record-low interest rates and an improvement in competition for mortgages.
House prices increased in the first half of the year, spurred by initiatives such as the government’s Help to Buy scheme. But in the second half of the year fears of a housing bubble saw the Bank of England impose stricter lending limits on borrowers in a bid to cool the market.
The report also stated that Chancellor George Osborne’s stamp duty changes, announced in the autumn statement last month, reduced the average first-time buyer’s tax bill by almost £800. The average age of a new purchaser rose to 30 from 29 in 2013, while the region with the oldest average age was London at 32, the report found.
Homesale experienced real house price growth of around 3.8% in 2014, compared with 2013. This was measured across a full price range of house prices, from £90,000 – £700,000, in several postcode areas across Chester, The Wirral and North Wales. Furthermore, at Homesale, we achieved an overall 96% of asking prices for our sellers.
This emphasises the reality that it isn’t necessarily wise to choose an estate agent just based on the lowest fees but to always choose the estate agent who is achieving the highest price, speedily and effectively.
Call us at Homesale on 01244313900 for a no obligation FREE valuation. Alternatively pop into our office and we will be delighted to help. We look forward to meeting you.