First-time buyers face tougher times than ever

CF7PW5 Worried couple doing their accounting  Worried; couple; accounting; 30s; Mid; Adult; Man; Male; Caucasian; 20s; Young; Ad

First-time buyers are giving up hope of ever owning their own home, as property prices go through the roof.

The latest figures from Your Move and Reeds Rains show that first-time buyer completions in May were down 18.1% on the same month last year, with just 22,000 sales.

Part of the reason for the decline was buyer uncertainty in the run-up to the general election. But, says Adrian Gill, director of estate agents Your Move and Reeds Rains, "A second and more permanent root to the disappointing first-time buyer figures is the challenge of cultivating a deposit."

He adds: "Many first-time buyers are still on tight monthly incomes, struggling to save while savings rates stay so low. Meanwhile, deposits are rising primarily as property prices continue their seemingly unstoppable upwards march."

The average price of a first home in May was up 0.3% on April's figure at £153,348 and 6.7% higher than a year ago.

Compare mortgage rates

Meanwhile, the average deposit now stands at £29,894 - £1,703 more than in May 2015. That's nearly two-thirds of the average annual income, making property ownership out of the question for many.

So where is affordable for young people to buy?

Research last year by estate agents Knight Frank revealed that the most affordable British city for young people to buy is Durham, which has an average graduate starting salary of over £20,000.

With a mortgage of five times income, this puts a one-bedroom flat well within reach.

Nottingham was rated the second most affordable city, followed by Liverpool, while Hastings and Canterbury featured in the south-east.

Slim pickings for first-time buyers

But the options available to potential first-time buyers get fewer every year.

"This is wholly due to a lack of housing supply versus a stack of housing demand," he says.

"If we want to see property prices stabilise and deposits fall as proportions of income, the government must address the housing supply problem, for which there is only one solution: build more homes."

This lack of affordable housing is driving young people away from the areas in which they grew up, according to Conservative communities secretary Greg Clark.

"In many parts of our country, it has become normal for young people to leave, though not out of choice. This might be to find work, but more and more, it is to find a home that they can afford," he told a Local Government Association (LGA) conference yesterday.

Compare mortgage rates
'Right to Buy' Scheme Like Filling an Bathtub with No Plug

Read more on AOL Money:

"Granlord" investors pricing out first time buyers

Why the new first-time buyer home discount is a ruse

Second-steppers cannot afford to move

The most expensive rental property in the UK
See Gallery
First-time buyers face tougher times than ever

Audley House, a Grade II Listed Georgian property, is on the rental market for an astonishing £780,000 a year - or £15,000 a week, making one of the UK's most expensive rental properties.

It is estimated the bills will come to a whopping £125,000 a year, on top of the rent.

The six-storey mansion is spread out over 8,346 sq/ft and is worth approximately £35million. 

However, you need not worry about walking up all those flights of stairs as there is a private passenger lift with access to all floors.

The luxurious property is set in the heart of Mayfair.

Comfort cooling, state-of-the-art security and audio-entertainment technology are incorporated throughout the Mayfair mansion. 

The property features five VIP bedrooms suites.

Each of the luxurious bedrooms are decorated in different coloured decor.

At 1,500 sq ft the master bedroom is bigger than the average British home.

The mansion also features four reception rooms,a family kitchen, a gym and private walled gardens.  

The stunning six-storey property comes fully furnished with luxurious furniture, fixtures and fittings and is ready for tenants to move in.

Like all rental properties, interested tenants will be asked to hand over a six week deposit and the first month's rent before they move in. 

The property comes with a five year contract meaning tenants will end up handing over £3.9million to the landlord.

Read Full Story