According to SmartNewHomes, buyers looking to purchase a new home under the £125,000 price bracket, to avoid paying stamp duty, are faced with relocating hundreds of miles away from family and friends as a result of the huge property price differences across the UK.
While those in the north, Yorkshire & Humberside, Wales and the East Midlands are able to choose between a wide selection of homes, with properties ranging from one and two bedroom apartments to three bedroom semis and even detached houses, those living in East Anglia and the South East would be lucky to secure an out of town, one bedroom apartment. And for those hoping to live in London, perhaps not surprisingly, they are unable to find any new properties that fall under the £125k bracket.
David Bexon, managing director at SmartNewHomes.com, said: “New home buyers can get a lot more for their money in the north of the UK, however it is startling to see the widening price gap that is emerging. While a young professional living in London, looking to step onto the housing ladder will not find anything under the £125k, stamp duty exempt price bracket, a similar individual, living in Yorkshire is able to purchase a new three bedroom house for just £121,495.
“The property price gap across the country appears to be widening as the average price of a new home in areas such as London, continues to grow rapidly year on year (up 5.25 per cent over the last year), while prices in Wales or the West Midlands are stagnating or even falling, with prices over the last year down 5.9 per cent and 7.9 per cent respectively.”
Outward migration from London is high (- 6.8 per cent), as many buyers are forced out of the region when looking to purchase a new home, with first-time buyers often being the worst hit. Large numbers of want-to-be home owners are struggling to step onto the housing ladder with continually rising prices making the likelihood of them owning a new home in the capital increasingly unlikely.
Bexon added: “For the large number of buyers struggling to step onto the housing ladder for the first time, there are however, an increasing range of options available to them. There are a growing number of part buy/part rent schemes available and the emergence of websites that allow buyers to link up with others looking to buy in the same area, are providing potential buyers with a life line towards owning their own property.
“In addition, many developers now offer a range of incentives on new developments, a number of which offer to pay the stamp duty on their first property – enabling even those looking to buy in London with an opportunity to escape having to pay the stamp duty on their first purchase.”
