First time buyer house prices outpace rest of market

UK property prices have risen 7.3% annually to reach an average of £219,315.

The number of new buyers registering has risen 1.7% in the last month and 10% annually as the summer market draws to a close and buyers return from holiday. Meanwhile, the supply of properties has contracted with the number of new homes for sale down 3.6% on the month and down 14.7% on last year. This has resulted in over twelve buyers chasing every property to come onto the market, the highest ratio in 17 months.

First-time buyer house prices are rising at a faster pace than the rest of the market, up 9.9% annually with a monthly increase of 0.9%. The average price of a starter home now sits at £169,259.

The number of new first-time buyers is up 8.5% on last August while there has been a 1.2% rise in registrations month on month. First-time buyers made up 41.6% of all mortgages written in August, down from 45.9% a year earlier but up 0.3% on the previous month. The average first-time buyer deposit has risen significantly in the last month, up 7.0% to reach £34,472.