Study reveals extent of first time buyer problems

31-Aug-2007

House prices in the UK have risen by 90 per cent over the past five years, according to a survey of global property trends produced by Halifax, indicating the extent of the problems faced by first time buyers over that period.

Since 2002 only Spain out of the Eurozone countries has outperformed the UK price rise, though even then the average house price in the former country is some £37,000 lower than it is in the UK.

The UK's price growth was also higher than that found in either the US, Canada or Australia, the study noted, though Halifax did at least acknowledge that price growth was now slowing.

"UK house prices have risen more rapidly than in its eurozone neighbours over the past five years," commented Halifax group economist Tim Crawford.

"House price growth, however, has slowed in the past couple of years compared with the likes of Belgium and France recording bigger increases. Two of the largest economies surveyed – the US and Germany – are the only ones to have seen a fall in house prices," Mr Crawford added.

House price growth in August rose by half a percentage point but nonetheless stood at just 0.6 per cent, Nationwide reported this week.

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