economy
Young first-time buyers face toughest time since financial crisis, says UK housebuilder
Barratt Redrow boss says rising interest rates, higher student debt and squeeze on wages hitting property dream
TL;DR
- First-time buyers face the most challenging conditions since the financial crisis, according to Barratt Redrow's departing CEO.
- Rising interest rates, high student debt, and wage stagnation are key factors making home ownership difficult.
- Student loan repayments lower the assessed income for mortgage purposes, reducing the pool of potential buyers.
- The average age of first-time buyers is increasing, leading to generational inequalities.
- There are 6% fewer first-time buyers compared to a year ago.
- Despite fewer buyers, those remaining target homes costing £10,000 more on average.
- The average price for a first-time buyer's home is £254,750, a 4.3% increase, outpacing wider UK house price growth.
- In London, the average first-time buyer price has exceeded £500,000.
- Changes in mortgage affordability testing have made more homes accessible to first-time buyers.