New Halifax research shows that the average house price paid by a first time buyer (FTB) pushed through the £150,000 barrier for the first time in 2006. The average price increased by 11% in 2006 to £151,565 from £137,122 in 2005. Over the past five years the average house price paid by a FTB has almost doubled, rising by 95% from £77,914 in 2001.
In 2006 the average FTB house price in each region of the UK was more than £100,000 for the first time. The average FTB property price was lowest in Scotland (£108,922) and the North (£109,243) with both these regions seeing a rise in the average FTB price above £100,000 during the year. Five years ago, in all regions of the UK, bar London and the South East, the average FTB paid less than £100,000.
The average FTB in London paid more than £250,000 for the first time in 2006 (£250,819). Significantly this is above the 3% stamp duty threshold, highlighting that the average FTB faces a stamp duty bill of at least £7,500 in London. Across the UK, the average FTB faces a stamp duty bill of around £1,500.
The gap between the average income for an FTB and someone in their 20s has widened significantly in recent years. Only 10% of 22-29 year olds, with average full-time earnings of £33,202, had comparable income levels to first-time buyers in 2006. The average first time buyer (FTB) had an income of £29,610 in 2006; 35% more than the average full-time earnings of 22-29 year olds across the UK (£21,913). Five years ago, the average FTB income was 20% higher than average full-time earnings of 22-29 year olds, while in 1997 the average income of a FTB was broadly in line with the average full-time earnings of 22-29 year olds.
