First-time buyers in the UK face average house prices of £150,000, the Halifax First-Time Buyer Annual Review 2007 shows.
With data from the Council of Mortgage Lenders, the Office of National Statistics and the Halifax's own database, the review finds average starting house prices are 11 per cent higher than in 2005.
Moreover, in the last five years average prices for first-time buyers have risen by a colossal 95 per cent – in 2001, a first house cost only £77,914 on average.
In line with trends revealed in most house price surveys, the average property price in London in 2006 was markedly higher than elsewhere - £250,000 for first-time buyers.
Group economist Tim Crawford described first-time buyer affordability as "an issue" across the UK, noting that in every region, for the first time, average first-time house prices were above £100,000.
The Housing Affordability Index from Lombard Street Research warned yesterday that house price affordability is in "the danger zone", with homes overvalued more than at any time since the early 1990s.For more information about first-time buyer mortgages, click here.
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