Posts with tag: first time buyer property

First Time Buyers Seeking Rural Properties

Published On: August 4, 2015 at 10:51 am

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Recent research from Experian indicates that aspiring homeowners are moving away from city centres and seeking properties in rural locations.

First time buyers are more likely to buy a house in the Western Isles of Scotland rather than in an exclusive area, such as Kensington and Chelsea.

Furthermore, the average age of a first time buyer has slowly risen over the last decade. Experian found that first time buyers are more often young families between the ages of 26-35-years old, than younger professionals.

This is believed to be due to families seeking a permanent residence and young professionals enjoying the flexibility of renting.

First Time Buyers Seeking Rural Properties

First Time Buyers Seeking Rural Properties

Affordability is also a key factor in purchasing one’s first home.

The latest data, from 2012, shows the average age of first time buyers in each region of the UK:

Region

Average age of first time buyer
North West 35
North East 35
Yorkshire & the Humber 36
East Midlands 35
West Midlands 38
East of England 43
London 52
South East 45
South West 48

These shocking statistics reveal that the average first time buyer in the capital is 52-years-old. This is considerably higher than other parts of the country, despite the youngest first time buyer still being 35-years-old.

London’s first time buyers must therefore wait longer until they have saved enough for a deposit and can securely purchase a property.

But London is still out of reach for so many. A report in 2014 states: “On the best measure of affordability, a standard property in London is half as affordable as it was in 1997 and not a lot more affordable than at the worst point in 2007.”1

An example of affordability pressures in the capital is emphasised by this property comparison: A two-bedroom home in Kensington and Chelsea is on the market on Rightmove for £3.1m. A three-bedroom house on the Scottish border is on the market for £182,500.

In this instance, a first time buyer could save a massive £2,917,500 by looking further afield.

Richard Jenkins, a senior consultant at Experian, comments: “The population in British cities has clearly dramatically altered in recent times. With central areas now dominated by a combination of the very well off and a new generation of young renters.”1 

Londoners are quite aware of the dramatic house prices in the city. But it is still a desirable location of accessible amenities. Property developers take advantage of this fact and make a considerable profit out of those that struggle to live in the capital.

It is a known fact that more homes need to be built, but a levelling of prices across all UK regions would also make housing more affordable for all buyers. First time buyers should have the flexibility of living either in a city or in a rural spot.

The amount of private renters in the country will continue to rise if prices do not come down, meaning more aspiring homeowners pushed out of the market.

1 http://www.todaysconveyancer.co.uk/first-time-buyers-moving-further-afield-cms-15391

The Capital’s First Time Buyers Look to South East London

Published On: July 21, 2015 at 12:55 pm

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South East London is attracting first time buyers who are priced out of other parts of the capital. The boroughs of Bromley, Bexley and Greenwich account for a quarter of all of London’s first time buyers, according to Experian.

One in four buyers are joining London’s homeowners in parts of the capital stretching from Greenwich Peninsula to Crystal Palace.

Experian, an information services firm, found that 23% of first timers find a home in the cheaper parts of East London, such as Havering, which accounts for around 13% of first time buyer sales. Newham, Tower Hamlets and Barking and Dagenham are also popular.

Other areas that put buyers on the property ladder include Sutton, accounting for 9.07% of sales, Hillingdon at 5.37% and Croydon at 4.99%.

A tiny amount of house hunters find their first home in Kensington and Chelsea, at 0.08%. In Westminster, Camden and Hammersmith and Fulham, just over 1% of first timers can buy a home.

London’s top boroughs for first time buyer flats

Borough

 Amount of first time buyers Average price Annual price change

Monthly price change
Bexley 16.06% £289,750 14.1% 0.4%
Havering 12.95% £315,683 10.9% 1.2%
Sutton 9.07% £327,010 14.5% 1.2%
Bromley 5.38% £387,524 13.1% -0.2%
Hillingdon 5.37% £335,354 13.7% -0.6%
Croydon 4.99% £334,729 15.9% 1.9%
Greenwich 4.2% £364,619 14.5% 2%
Barking and Dagenham 3.51% £277,044 13.6% 1.9%
Newham 3.19% £301,368 17.5% 1.6%
Tower Hamlets 3.07% £495,748 13.1% 0.1%
Hounslow 2.51% £369,642 13.3% 1%
Kingston upon Thames 2.37% £426,440 10.2% 1.4%
Hackney 2.08% £624,603 13.6% 0.9%
Waltham Forest 1.82% £363,776 9.6% 0.6%
Lewisham 1.74% £399,425 15.3% 1.2%
Merton 1.49% £471,833 10.6% 0.9%
Barnet 1.47% £463,626 13.9% -0.2%
Richmond upon Thames 1.42% £623,630 8.9% 0.1%
Enfield 1.34% £340,654 15.1% 1.3%
Redbridge 1.33% £358,580 13% -0.9%
Haringey 1.03% £503,468 10.3% 1.6%
Harrow 0.87% £380,110 14% 0.3%
Southwark 0.84% £554,035 10.3% 0.4%
Islington 0.82% £674,598 10.4% 0.6%
Wandsworth 0.66% £580,655 7% 0.5%
Ealing 0.61% £459,081 12.4% 0.2%
Brent 0.56% £431,532 13.5% 0%
Lambeth 0.46% £534,768 7.8% 0.5%
Camden 0.38% £806,239 6.3% -1.2%
Hammersmith and Fulham 0.38% £769,308 5.5% -1.1%
City of Westminster 0.29% £967,400 2.7% -0.4%
Kensington and Chelsea 0.08% £1,364,033 5.6% 2.4%
The Capital's First Time Buyers Look to South East London

The Capital’s First Time Buyers Look to South East London

Bexley

Bexley’s strong appeal to young families priced out of more central parts of London could be the cause of its performance in the study.

In the most recent Family Hotspots report from Family Investment, Bexley was named the best place to bring up a child in London. This is due to its open spaces and good grammar schools, including Beths Grammar School and Bexley Grammar School, which were rated outstanding by Ofsted.

Managing Partner of Robinson Jackson estate agents, Kevin Wooder, says that most first time buyer families find their starter home in Bexleyheath, which has good schools, a thriving high street and good commuter links.

Locals can reach Cannon Street in 33 minutes and Charing Cross in 37 minutes. An annual season ticket costs £2,188.

Compared to the rest of London, homes are also affordable. Wooder says that a 1930s three-bedroom semi-detached house costs between £370,000-£440,000. A three-bedroom Victorian terrace is priced at around £320,000-£330,000.

Wooder comments: “Young families are moving into the area. It has a very good selection of schools, the infrastructure is good and it is affordable compared to other London boroughs.”1

Crystal Palace

Crystal Palace is a perfect area for those still wanting to stay close to central London. A large part of Crystal Palace is within Bromley, but it also crosses over into Croydon and Southwark.

Branch Manager at Wooster & Stock, Zoe Matheson, says: “Everybody knows about the park, but Crystal Palace has rapidly become a really cool place. It has lots of lovely restaurants and boutiques and a cocktail bar recently opened.”1 

A food market, unique house building, gorgeous views of the City and the antiques shops of Church Road are also boosting Crystal Palace’s reputation. The town itself boasts grand Victorian properties, which have mostly been converted into large flats.

A two-bedroom flat costs around £350,000, although larger flats overlooking the park sell for up to £650,000.

The area has received a boost from the extension of the East London line in 2012, bringing direct links to Docklands. There are railway services to Victoria and London Bridge that take under half an hour. An annual season ticket costs from £1,508.

Greenwich 

The historic Greenwich Village is an appealing area to house hunters, but two-bedroom flats cost around £500,000 and houses can cost millions. Greenwich Peninsula is more realistic and is still within walking distance of the shops and restaurants of Greenwich Park.

The Peninsula, home of the O2, was named as the solution to London’s housing troubles around the year 2000. And it has finally come into the limelight with two-bedroom flats priced at around £300,000.

Greenwich Peninsula is close to the North Greenwich tube station, in zone 2 on the Jubilee line, just one stop from Canary Wharf and four stops from London Bridge.

Critics claim that Greenwich Peninsula seems unfinished as developments are still forming, but the lifestyle is already improving.

1 http://www.homesandproperty.co.uk/property-news/affordable/homes-buy-bromley-bexley-and-greenwich-why-first-timers-are-flocking-south-east-london