Price inflation highest in entry-level housing

Posted: 20 Dec 2006 10:29:54 GMT

Prices for entry-level property have risen at more than twice the rate of the market as a whole over the last year, new research from Moneyextra has claimed

Prices for entry-level property have risen at more than twice the rate of the market as a whole over the last year, new research from Moneyextra has claimed.

First-time buyer property has increased 14.5 per cent in value to £182,113 over the past year, compared to price rises of 6.27 per cent for homes looked at by people trading up.

"House price inflation is being outpaced by the rate at which we're going deeper into debt to afford the roof over our heads," says Robin Amlot of Moneyextra.

Increases in average borrowing by first-time buyers have also outpaced the market average, up 9.9 per cent over the past year compared to seven per cent among movers.

The average approved mortgage application during November stood at £140,664.

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