House prices are rising but not as fast as they were before – here’s how to get help buying a home
Brits will now fork-out £223,807 on average to buy a home
HOUSE prices across the UK rose by 4.5 per cent in the past year, new figures have revealed.
Brits will now pay £223,807 for a typical home - a hike in prices of around £10,000 - compared to a year ago.
But the annual rate of growth has slowed from 4.8 per cent in September and 5.1 per cent in August.
The area with the largest growth was the east midlands, which saw prices rise by seven per cent annually, with an average home now costing £184,544, followed by the east of England, which saw a rise of 6.1 per cent.
London had the lowest growth of of any region, with the average price rising by just 2.1 per cent - the weakest growth since March.
But buyers in the capital will still have to fork out the most to get on the property ladder with an average house price an eye-watering £481,102.
Buyers in Wales will pay £153,316 on average for a home (up 4.5 per cent) while those in Scotland will pay £143,544 (up 2.8 per cent).
The lowest average price was again in the north east where buyers will typically pay £127,000 to get a property.
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
- Help to Buy loan: This scheme is for those who have a 5 per cent deposit, and is only available on new-build properties that are worth less than £600,000. The government lends you up to 20 per cent of the property value (interest-free for the first five years) which gives you access to cheaper mortgages. You will need to pay this back at the end of the mortgage or when you sell.
- Starter Homes: First-time buyers under the age of 40 can access this new scheme. You’ll get a 20 per cent discount on the market value of the property (new-build only) but you cannot sell or let the property for five years after you buy it.
- Shared ownership: This scheme is available to non-homeowners who earn £80,000 a year or less (£90,000 in London). People can buy a share of a home from a housing association and continue to rent the remainder. Buyers will need a ten per cent deposit as well as money to cover stamp duty and other fees. You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties
Getting on the housing ladder is becoming increasingly unaffordable for first-time buyers.
Buyers now an average deposit of £33,000 to buy a home, research from Halifax found, with those trying to buy in London needing more than £100,000.
In an attempt to help, chancellor Philip Hammond scrapped Stamp Duty for first-time buyers in last month's Budget.
Reacting to the figures, Owen Woodley, of Post Office Money said: "The fact that house prices fell and sales volumes have decelerated suggests we have reached a tipping point where growth has left many areas unaffordable for the average buyer.
"This could see delays for the 11 per cent of current homeowners who want to move up the ladder in the near future as they struggle to find the right property at an acceptable price from a narrower market."
More on money
The figures came out on the same day it was revealed that inflation rose to its highest level in nearly six years in November.
It hit a rate of 3.1 per cent, adding to concerns about the cost of living for many households after it rose to five-year high of 3 per cent earlier this year.
Jane Tully of the Money Advice Trust said: "With inflation now at its highest since March 2012, living costs continuing to rise and wage growth unable to keep pace, many households are already struggling to make ends meet."
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