First time buyers are putting down ever larger deposits. Robin Amlôt of Moneyextra said, “Our analysis shows the average mortgage deposit being put down by first time buyers in February 2007 is almost 11 per cent higher than a year ago at an eye-watering £37,632.
“It’s no wonder the so-called lower end of the housing market is stalling with young people attempting to get onto the housing ladder being required to save a figure effectively equivalent to more than a year and half’s average earnings2”
At the same time, the price pressure on increasingly hard-pressed first time buyers appears to be easing a little - the annual increase in prices for first timers was just 4.68 per cent to £177,096. However, the slowing in the rate at which prices are rising in this sector will also reflect the fact that fewer people are able to afford to buy.
By contrast, average house prices across the whole market rose by 7.38 per cent in the year to February 2007, to £222,923.
The average value of mortgages actually completed by AWD Moneyextra customers in February slipped from the new high set in January of £155,185.78 down to £153,571.68.
