The latest House Price Index was released today and once again shows how first time buyers are being screwed over by the market.
House price inflation was up over this time last year, by 8.4%, although it was slightly down from last month (by a tiny 0.2%). One of the real worries is that for first time buyers, prices were 9.7% higher on average this January compared to last January – and 0.7% up on the month.
We wrote last week about the Help to Buy ISA that was the Chancellor’s offer to first time buyers, a consolation prize that does very little in the face of the sky rocketing house prices. With rents also on the rise – the LSL Buy-to-Let index published last week showed that there were the largest annual rent rises since May 2013 – there is even less chance of saving for that deposit.
The average cost of a first time home now stands at over £400,000 in London, with house price inflation at nearly 13%, so at the end of the 5 years of saving for your deposit with the ISA, the average cost of a first time home will be over the £450,000 threshold.
BBC 1 News tonight will be looking at the rise of Generation Rent and what this means for those of us stuck renting. Tune in 6pm to find out more!