Latest UK house price jump could ‘scare off first-time buyers’

The latest house price data suggests that many people who do not yet own property will not do so for quite some time.

The cost of the typical UK home has risen to more than £250,000 for the first time, according to Halifax.

The UK’s largest mortgage lender, part of Lloyds Banking Group, said residential property prices in October were 7.5% higher than a year ago, adding to the gap between income and house prices, which has sky-rocketed in recent years.

Lucy Pendleton at James Pendleton estate agents is among those concerned that a growing number of younger people are giving up on the idea of ever owning their own home.

She said: “Average house prices may have crashed through a quarter of a million pounds for the first time but the growth rate that got them there is frankly ridiculous.

“There seems little prospect that house prices are really rising this fast nationally, and it’s a dangerous thing to be saying, unless true, because it can scare off first-time buyers, who are the lifeblood of the market.

“The huge demand that has driven the market higher has been fuelled by armies of buyers pumped up by impatience, adrenalin, frustration and relatively cheap borrowing.

By Marc Da Silva, please read the full article on Property Industry Eye.

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