House prices continue to squeeze first-time buyers

Posted: 21 Sep 2006 09:18:09 GMT

A new report warns that prices for first-time buyers are rising faster than the general housing market.

First-time buyers are being squeezed out of the property market, as house prices continue to rise rapidly across the UK.

A new report by website Moneyextra claims that the property market picked up last month, causing prices paid by first-time buyers to increase at a faster rate than the general market.

Following the traditional summer slump, the property market has now rallied, with a host of figures out this week showing that prices have strengthened again.

The price of an average property sought by first-time buyers on Moneyextra has risen by a whopping 36.4 per cent since August 2004 and 11.6 per cent since last year.

However, the average property value searched on the website by all visitors actually fell by £1,418 between July and August and rose just 2.08 per cent over the 12 months to August 2006 to £213,111.

The average mortgage comparison web users carried out last month was £133,415, down by £3,840.16 or 2.88 per cent from July and up 5.34 per cent on the same month last year. The most popular lender for August 2006 was Nationwide Building Society, which has been in pole position since the start of 2005.

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