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First-time Buyers Face Further Price Pressure to get onto the Property Ladder

Average property prices have increased further over the last month, meaning that getting onto the property ladder is proving more difficult for first-time buyers, says Rightmove.

Average property prices have increased further over the last month, meaning that getting onto the property ladder is proving more difficult for first-time buyers, says Rightmove.

Rightmove’s September House Price Index, the largest monthly sample of residential property prices in the UK, shows that the average price of a property coming to market in the last month had risen by 0.7% or £2,277.


Although the figure indicates healthy market growth in September, it draws light on the affordability barriers many first-time buyers face when trying to get onto the property ladder.


According to Rightmove, properties with two bedrooms or less, often targeted by first-time buyers, have seen asking prices rise monthly by 3.3% and 10.5% year-on-year with the average price now set at £194,477 across the UK, excluding inner London.


In contrast, properties often bought by second-steppers, properties with three or four bedrooms, have increased by just 0.5% monthly and 5.2% year-on-year to an average of £258,836.


This means that first-time buyers are paying on average nearly £19,000 more for their preferred property choice in September 2016 than a year earlier – making it harder for them to get onto the ladder.


Overall, Rightmove said that the data shows positive activity in the market with seven out of 10 regions seeing a monthly increase in asking prices of properties marketed by new sellers.


Elsewhere in property, a new legislation announced changes to Stamp Duty rates for purpose-built student accommodation, with these type of properties below the £150,000 mark no longer subject to any surcharge.

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