Average price of an 'affordable' home hits £190,000
The average price paid for a home under the various affordable housing schemes in Britain is now £189,7861, according to new research from the Halifax. This is just 4% (£7,750) lower than the £197,535 average for house purchases.
Unsurprisingly, London (£323,148) tops the regional price chart, while the North (£147,437) boasts the lowest prices. Despite this, the average value of a London property sold in a scheme is 33% lower than the average London regional price (£482,579), a further indication of how out-of-sync the capital's property market is with much of the UK.
First-time buyers are getting on to the ladder
First-time buyers remain the biggest beneficiaries of Help to Buy housing schemes; accounting for 80% of purchases over the last year. This is significantly higher than the 46% of all mortgage-financed home purchases made by first-time buyers over the same period.
The latest official figures reveal that Help to Buy and NewBuy have helped 99,601 buyers acquire a home since the introduction of Help to Buy in 2013. Four out five (or 79,680) of these purchases were completed by first-time buyers.
The average price paid by first-time buyers using the schemes is now £150,3611; 10% (£16,732) lower than the average price paid by FTBs (£167,093) for all housing.
Craig McKinlay, mortgages director at Halifax, commented: “Many of the affordable home ownership schemes available have been designed specifically to help first-time buyers get on the ladder and support construction of new build homes.
“The latest official figures show this has been successful, as Help to Buy and Help to Buy NewBuy schemes have helped close to 80,000 first-time buyers on to the housing ladder since Help to Buy’s introduction in 2013. As the economy continues to recover and mortgage interest rates remain at very low levels. We expect to see continued growth in first-time buyers during the second half of the year.”
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