Property: First-time buyer hotspots in the UK – locations to get the biggest discount

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Martin Roberts discusses the rise in house prices

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The latest research by Birmingham estate and lettings agent, Barrows and Forrester, has unveiled where in the UK first-time buyers can find the best value based on the average price paid for a first time home compared to the rest of the market.

Getting onto the property ladder can be hard, with many saving for several years to put a deposit down on their first home.

This means many look for areas that are more affordable to settle.

According to the experts, the average first-time buyer home currently costs £220,460 having increased by 9.9 percent annually.

This is compared to an average of £309,462 paid by this funding the purchase of a new home with the sale of an existing home.

This has increased by 11.4 percent in the past 12 months.

This means, on average, first-time buyers in the UK can benefit from a 28.8 percent discount when compared to the rest of the market.

However, certain locations in the UK may be cheaper to buy than others.

The research by the estate agent has revealed that first-time buyers enjoy a bigger discount when buying in Scotland, where they will pay an average of £114,829 versus the £218,673 paid by those funding the purchase of a new home with a sale of an existing home.

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Following closely was the South East, where the first time buyer will pay 32.9 percent less to get onto the property ladder.

The South West, West Midlands, East of England, North West, North East, East Midlands and Wales are also home to a discount of more than 25 percent.

Those buying in Elmbridge, Surrey can expect to pay an average property price of £450,621, 43.8 percent below the average of someone buying a new property through selling an old one.

First-time property buyers can also make use of discounts in Woking, Mole Valley, Surrey Heath, Horsham and Sterling.

The estate agent found that London was home to the smallest first-time buyer discounts, with first-time buyers spending, on average, 4.3 percent more than other buyers.

In Newham, the discount was just 5.4 percent, while Tower Hamlets, Waltham Forest, and Hackney also offered a small first-time buyer discount.

Managing Director of Barrows and Forrester, James Forrester, said: “While a red hot market has been heralded as a sign of economic success during the pandemic, the steep increase in house prices won’t be so warmly welcomed by the nation’s struggling first-time buyers.

“Despite talk of an interest rate increase, we look set to see further upward growth and so the outlook is a little bleak for those scrimping and saving for a mortgage deposit without the financial security of an existing home to sell.

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“The small silver lining is that first-time buyers continue to pay less although this is, of course, influenced by the fact they generally purchase smaller homes to begin with compared to second and third rung buyers.

“Rather than a string of half baked schemes designed to ‘help’ first-time buyers by further fuelling demand, we would love to see the Government actually address the issue of supply and build more affordable homes to satisfy our unwavering appetite for homeownership.”

Property prices dropped in the midst of the pandemic and are now on the rise again.

With Christmas just around the corner, many may also opt to put their homes on the market in the New Year.

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