The situation for first-time buyers worsened in November as house prices increased across the UK once again, according to the Office for National Statistics (ONS).
The latest house price inflation now stands at 6.7 per cent in the year to the end of November after having fallen to 6.4 per cent in October.
This figure masked some wide regional variations, with properties in Rutland increasing by 20.7 per cent on average, while Aberdeen and Inverclyde in Scotland saw a fall of 7.8 per cent.
Andrew Montlake, director at Coreco Mortgage Brokers, said this increase meant the average first-time buyer property was facing intense competition for affordable property.
He said: "The unrelenting march of house prices will disappoint many first-time buyers who have been hoping that prices would correct enough to help them get on the property ladder and take advantage of some extraordinarily low mortgage rates.
“With rents also rising as well as the general cost of living, together with minuscule interest rates for saving, it is tougher for buyers to save for a deposit without some kind of family assistance."
Jeremy Duncombe, director of Legal & General Mortgage Club, called for government action to help first-time buyers.
He said: “It is encouraging to see the government’s introduction of a Starter Homes Scheme, which is a progressive step forwards to stimulate housing supply.
"We await the Housing white paper at the end of this month with bated breath. Hopefully it will produce some concrete and realistic plans that will result in a cross party effort to help tackle our nation’s housing shortage.”
david.rowley@ft.com
