The most recent house price guide from Communities and Local Government has revealed a big difference in the cost of an average house for first-time buyers compared to other house buyers. In November last year, the price for an average house bought by a first-time buyer increased by 3.9 per cent, whereas the cost for those buyers who already owned a house fell by 0.7 per cent.
According to property and house price experts, the reason for the increase in prices was because of the Stamp Duty ceiling being put up to ?175,000 in 2009, The Daily Telegraph has reported. This encouraged more people to get on the property ladder before the Stamp Duty limit was lowered to ?125,000, where it is currently.
In total, house prices were higher than in 2008 and 2009 ? 0.6 per cent higher than in November 2008 and 0.7 per cent higher than in October last year.
The director of www.easyroommate.co.uk, Jonathan Moore, said: ?A lot of first-time buyers missed out on the cheapest house prices because they couldn?t get mortgages, and missed out on the stamp duty holiday as a result. Now it?s becoming trickier for young buyers to get a foot on the property ladder.?
?We are yet to see lenders consistently offer first-time buyers realistic loan-to-value mortgages at cheap enough rates. This situation is only going to get worse as house prices continue to rise and larger mortgages are needed.?
A spokesperson for Communities and Local Government said: ?The Government continues to take unprecedented action to support first-time buyers aspiring to enter the market by increasing opportunities to buy a share of a home.?
