First time buyers 'facing higher house prices'

04-Oct-2006

The average price for a property in the UK has now reached just over £150,000, which may leave first time buyers feeling as though the property market is increasingly out of reach.

As house price inflation reaches yearly increases of 5.6 per cent and income multiples for mortgages have now risen to 3.24 times an annual salary, over 30 per cent of families under the age of 40 are unable to climb onto the property ladder, reports in2perspective.

However, despite the difficulties that first time buyers may face, property ownership remains attractive, with first time buyers accounting for 13.4 per cent of the market, according to the National Association of Estate Agents (NAEA).

"First time buyers are continuing to find ways of getting a toehold on the property ladder, showing just how popular home-ownership is to many young people. But [data] suggests that they are continuing to stretch themselves to do so," said Michael Coogan, director general of the Council of Mortgage Lenders.

According to data for 2006, published by NAEA, around 280,000 mortgages are at least one month in arrears.

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