UK's first time buyers hit hardest as house prices continue to soar
Published by Jon Land for 24dash.com in Housing and also in Communities, Finance
UK's first-time buyers hit hardest as house prices continue to soar
The UK's house prices have continued to soar, rising 10.2% in the year to June, the Office of National Statistics' latest figures show.
And prices paid by first-time buyers were 12% higher in June this year than in June 2013, while costs for owner-occupiers increased by a significantly less 9.5%.
Alex Hilton, director of campaign group Generation Rent, has slammed the increase in prices for first time buyers.
“The price of a first home is 12% higher than it was last year – a bigger rise than for people who already own and the highest it’s been since 2010. The average private renter effectively spends two days every week working to pay off their landlord’s mortgage, and with prices rising at this rate fewer renters will ever escape this trap," said Mr Hilton.
He added: “We need to build many more homes to bring supply back in line with demand, and those of us who are stuck with the insecure private rented sector for the foreseeable future need better rights and the ability to call the place we live a home.”
Though prices have increased in most parts of the country, London has once again shown the highest growth, where costs have risen by 19.3%.
The South East (9.7%) and the East (7.9%) also saw steep hikes.
With London and the South East removed from the equation, the UK's house prices swelled by 6.3% in the 12 months to June, the ONS's latest house price index reveals.
In June 2014, prices paid by first-time buyers were 12% higher on average than in June 2013. For owner-occupiers (existing owners), prices increased by 9.5% for the same period.
Commenting on the ONS's figures, Matt Hutchinson, director of flatshare website SpareRoom.co.uk, said: "This is making an already difficult position for those in Generation Rent near impossible, especially given that saving for a deposit is being made ever tougher by negligible wage growth.
"A SpareRoom poll of more than 4,000 people this week revealed that 41% of flatmates think it will be at least a decade before they can afford to buy - up from 24% three years ago. And 19% believe they’ll never be able to buy a home.
"The reality of homeownership today is that many people have given up on it altogether. This is especially the case for young renters living in London and the South East of England.
"Many tenants would prefer to be paying a mortgage than rent each month, but face a life of renting instead."
The National Housing Federation said: “Unless we build more of the right homes at the right prices in the right areas, adult children will be stuck in their childhood bedrooms and parents will be unable to move on.”