Is the Housing Market for First-Time Buyers in the UK Too Expensive?

Is the Housing Market for First-Time Buyers in the UK Too Expensive?

Published on 11th January 2018

Is the Housing Market for First-Time Buyers in the UK Too Expensive?

Are you a first-time buyer looking for a house? Or are you looking to sell a residential property to first-time buyers? The housing market in the UK is in a precarious state right now for a number of reasons – Brexit, political uncertainty, a general slowdown in the economy.

Choose the right Estate Agent

Regardless, as long as you hire the best online estate agents, you should be able to sell your house fast and for a good price, regardless of the market situation. Moreover, if you are a first-time buyer, it makes sense to hire the best estate agents as they have a very good knowledge of the market and help you get the best deals.

At Cheapmoov, our local property expert, can help help you through the buying or selling of the property. If you are a first-time buyer, you will be guided through every step of the home buying process.

Housing Marketing for First Time Buyers

But first, let’s understand how the housing market is like for first-time buyers. This is actually a good time to buy a house as the property market has been tepid through 2017 and is expected to remain the same in 2018 as well.

The UK government wants to have at least 300,000 new builds to be added to the market every year. The expectation is that by increasing the housing stock through various policy incentives, they can make homes in the lower end of the housing market more affordable – especially for young, first-time buyers.

An average home in London costs £420,000, which is not cheap by any stretch of imagination. The average home outside London costs £200,000.

When you consider that the average household income in the UK is £26,000 and in London around £40,000, you will see that the housing market is very much overpriced for a vast majority of the UK population.

A 10% deposit on a home purchase, which is the expected down payment on a new property, will be 8 times the average household income, which is very high indeed.

Another issue is that the wage inflation has been very low in the UK over the last few years. Salaries paid to workers have not increased by much since 2015, although unemployment levels are quite low.

That’s why it is not easy for someone with an average income, or for a household in which just one person is working to invest in a new build property. Hopefully, the incentives given by the government will make homes cheaper for first-time buyers. Also, any improvement in the economy will lead to higher wage growth, which could improve the spending power of the average worker.

Sell your home fast

Meanwhile, if you’re looking to sell your house fast, visit our online estate agent pricing page and get started with our standard package that costs only £99, or the Premium package that costs £299.

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