IS BOURNEMOUTH too expensive for first-time buyers?
First-time buyers face needing to find nearly £12,000 more for a deposit than they would have done a year or so ago, analysis has found.
The typical deposit that a first-time buyer needs to put down has increased in every UK nation or region over the past year and now averages nearly £59,000, according to the research from Halifax.
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Halifax compared average first-time buyer deposit sizes in the 12 months to February 2020 with the 12 months to February 2021.
House price increases as well as requirements to put down a bigger deposit as a percentage of the house price mean that first-time buyers have needed to stump up more cash.
Across the UK, the average first-time deposit is now £58,986 or around 23 per-cent of the house purchase price, Halifax found, marking an £11,677 increase compared with an average deposit of £47,309 or 20% of the house purchase price a year ago.
The average house price in Bournemouth currently stands at £318,246 according to Zoopla.
In the last five years the average house price in the town has increased by more than 16 per-cent with an average value increase of £43,590.
This means that the average first-time buyer, currently stumping up 23 per-cent of the property price is paying around £73,194.
Many low-deposit mortgages disappeared from the market last year amid concerns about the impact of the coronavirus pandemic on the wider economy.
Lenders will be taking part in a new 5 per-cent deposit mortgage guarantee scheme later this spring, which should boost the availability of ultra-low-deposit deals.
However, would-be home buyers will still need to make sure they meet lenders’ criteria to qualify, which could be difficult for some as the pandemic takes its toll on the jobs market.
Andrew Asaam, mortgages director at Halifax, said: “We know that lockdown restrictions have made it more practically challenging for those buying and selling, but the stamp duty holiday has helped drive record levels of mortgage approvals as those held back by lockdown race to make savings.
“Raising a deposit is still the biggest struggle for those looking to take their first step on to the property ladder.”
He continued: “We know that first-time buyers will benefit from steps that make a deposit more attainable and we’re committed to lending £10 billion to help people buy their first home this year.
“Additional support for high loan-to-value (LTV) lending such as introducing a new version of the Help to Buy mortgage guarantee scheme in April will help make owning their own home a reality for those who have no other way of making it happen.”
Here are some properties currently on the market in Bournemouth for the average price:
£279,950
Burcombe Road, BH10
Property under area average - Zoopla
This two-bedroom detached bungalow is currently on the market for £279,950 - around £30,000 below the current average sale price in the town.
First-time buyers in the current market, stumping up a 23 per-cent deposit would need to save £64,387.
The well-presented property has a large driveway and rear garden with great potential to extend subject to the relevant planning consents.
Find out more on Zoopla.
£315,000
Wimborne Road, BH9
Property in Winton - Zoopla
This spacious semi-detached three-bedroom family home in Winton is currently on the market for £315,000.
The average first time buyer putting down a deposit of 23 per-cent would need to save £72,450.
Whereas a five per-cent deposit would amount to a more palatable £15,750.
£325,000
Shakespeare Road, BH6
Property in Southbourne - Zoopla
Within walking distance of Iford Bridge and the River Stour this three-bedroom detached family home comes in at £325,000 - just above the average asking price in the area.
The Southbourne property sits on a huge plot and is well-presented throughout.
A 23 per-cent deposit would set the average first-time buyers back a whopping £74,750.
Again, a five per-cent mortgage is a lot more affordable amounting to £16,250.
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