Price of a first home rises to record high despite referendum wobbles
- First-time buyers pay an average of £173,282 to get on housing ladder in May – a record high – fuelled by intense competition for properties
- Without pre-referendum supply shortfall FTB numbers would have been even higher: May sees 24,900 completed FTB transactions – down 0.8% from 25,100 in April
First-time buyers are paying a record amount to purchase their first home, despite the wider market wobbling around the EU referendum, according to estate agents Your Move.
May saw first-time buyers pay an average of £173,282 to get onto the housing ladder, up 2.7% from £168,656 in April and 15.8% more than the average of £149,645 seen in May 2015. First-time buyer house prices have now shot up more than £23,000 in the last twelve months and current average prices paid are the highest on record.
Across the market as a whole, house prices dipped in May in anticipation of the EU referendum on 23rd June, with the latest Your Move House Price Index showing house prices in England & Wales slumped 0.4% month-on-month in May. But the bottom of the market has defied this trend fuelled by unwavering FTB demand.
Completed first-time buyer sales totalled 24,900 in May, just 0.8% lower than the 25,100 seen in April, even as first-time buyers were held back by a lack of homes on the market ahead of the EU referendum. The overarching trend remains strong, with FTB numbers 13.2% higher than the 22,000 seen in February and 5.1% higher than a year ago.
Source: May 2016, First Time Buyer Tracker