According to the Nationwide Building Society house prices have fallen again this month by 0.7 per cent compared to September. The average house value now stands at £164,381.
Looking at a 3 month by 3 month comparison house prices have dropped by 1.5 per cent although the average cost of a house is 1.4 per cent higher than it was 12 months ago.
Martin Gahbauer, Nationwide’s Chief economist said “If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010.”
Of course falling house prices is good news for first time buyers but according to a recent report from the Home Builders Federation an average first time buyer would have to save everything they earn for more than two years because the typical value of a first time buyer deposit is now around £37,000. This is based on the purchase of a home for £155,000. The report also said that the average age of a first time buyer with no additional financial support from family or friends was 37 years old.
Stuart Baseley, executive chairman of the Home Builders Federation said: “First-time buyers – the life-blood of the housing market – are almost entirely shut out.”
“We desperately need an increase in lending and a properly functioning and sustainable mortgage market.”
Craig Gedey, Marketing Manager at www.DebtAdvisoryLine.co.uk said: “Jumping on to the property ladder is now simply unaffordable for many first time buyers.”
“The increasingly high percentage deposits now required by lenders are in stark contrast when compared to the much smaller 2 to 5 per cent deposits required in the first half of the decade.”
“Many people have simply borrowed more than they can reasonably afford to repay, stretching their finances to the limit. This in combination with the fact that house prices continue to remain unsteady has resulted in a record 2.4 million enquiries from people needing debt management help and advice in the UK.”
“At Debt Advisory Line we help people to get out of debt in the shortest possible time, because we know how stressful debt can be. We offer expert debt advice on all debt solutions available to people living in the UK”
Visit http://www.DebtAdvisoryLine.co.uk or call 0800 157 7254 for debt advice today.