First-time buyer asking prices over past year, 5 years & 10 years

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In advance of tomorrow’s budget I’ve outlined below the latest first-time buyer asking prices by region, over the past year, past five years, and past 10 years.

  • First-time buyer asking price growth over the past year and over the past five years was highest in the North West and lowest in London
  • First-time buyer asking prices in London are 5% lower than five years ago, from £504,264 in 2016 to £478,068 now
  • Asking price growth over the past ten years was highest in London and lowest in the North East

 

Region Feb-11 Feb-16 Feb-20 Feb-21 2021 vs 2020 2021 vs 2016 2021 vs 2011
North West £113,410 £118,540 £135,742 £147,693 9% 25% 30%
Wales £116,976 £125,084 £138,639 £149,337 8% 19% 28%
Scotland £103,902 £106,156 £116,610 £124,424 7% 17% 20%
North East £101,952 £103,589 £105,761 £112,167 6% 8% 10%
West Midlands £121,554 £139,685 £158,323 £164,986 4% 18% 36%
Yorkshire and The Humber £116,048 £126,534 £140,413 £145,942 4% 15% 26%
Great Britain £143,352 £177,294 £193,768 £200,692 4% 13% 40%
South West £158,270 £186,965 £210,998 £218,336 3% 17% 38%
East Midlands £114,460 £134,366 £157,101 £161,443 3% 20% 41%
East of England £158,821 £213,415 £240,033 £244,280 2% 14% 54%
South East £179,543 £238,395 £258,598 £263,159 2% 10% 47%
London £307,745 £504,264 £486,383 £478,068 -2% -5% 55%

A reminder of other stats around asking prices and the stamp duty holiday:

If the stamp duty holiday is extended until the end of June:

  • Rightmove estimates an additional 300,000 property transactions in England could get through, based on previous HMRC data
  • If an additional 300,000 transactions made it through, buyers could save £1.75 billion in total
  • Based on the current sales that have been agreed in England, 80% would pay no stamp duty due to this holiday

 

There are an estimated 628,000 sales in total still currently in the legal process across Great Britain, including those that were agreed last year and those that have been agreed so far this year.

Currently, Rightmove estimates that 100,000 buyers who agreed a purchase last year are set to lose out, if the deadline stays as 31st March.

Rightmove’s property expert Tim Bannister said: “We estimate that around 100,000 sales will miss the current March deadline, and so if the holiday is extended to the end of June it would give these the chance to complete in time, plus a number of other sales could now make it through that were only agreed at the start of this year. If it is announced this week we’re likely to see a rush of new buyers also trying to make use of the savings, but it’s worth remembering that the huge logjam will mean a new sale being agreed is still likely to take over four months on average to complete, so really an extension for a few months would be an indication that it’s to help those already trying to get their purchases through.”

If the stamp duty holiday is extended for six weeks buyers could save up to £1 billion.

Mortgage guarantee scheme:

  • 86% of properties up for sale have an asking price of £600,000 or less
  • Since the 2013 Help to Buy mortgage guarantee scheme was first announced, national asking prices have increased by 29% from £246,748 in October 2013 to £318,580 in February 2021
  • Since the 2013 Help to Buy mortgage guarantee scheme was first announced, national asking prices for first-time buyer properties have increased by 36% from £147,464 in October 2013 to £200,692 in February 2021
  • The national average asking price for all properties is currently £318,580, which is 3.0% higher than February 2020
  • The national average asking price of a first-time buyer property is £200,692, which is 3.6% higher than February 2020

 

The average asking price and average 5% deposit and 10% deposit by region for all properties is as follows:

Region Average Asking Price Feb-21 Average Asking Price

Feb-20

Annual change 5% deposit 10% deposit
East Midlands £236,453 £229,099 3.2% £11,823 £23,645
East of England £363,974 £353,078 3.1% £18,199 £36,397
London £621,886 £629,053 -1.1% £31,094 £62,189
North East £159,430 £151,206 5.4% £7,972 £15,943
North West £215,561 £200,985 7.3% £10,778 £21,556
South East £414,445 £404,114 2.6% £20,722 £41,444
South West £318,449 £308,106 3.4% £15,922 £31,845
West Midlands £240,789 £231,893 3.8% £12,039 £24,079
Yorkshire and The Humber £202,809 £197,344 2.8% £10,140 £20,281
National £318,580 £317,058 3.0% £15,929 £31,858

Note, the London average asking price is above the proposed £600,000 threshold.

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