Doubling of house prices 'makes life more difficult for FTBs'

28-Jan-2010

The size of the task faced by first-time buyers (FTBs) trying to get on the first rung of the property ladder has been illustrated by new figures which show house prices more than doubled during the last decade.

According to the Halifax House Price Index, the average cost of a home in Britain rose by 105 per cent in the 2000's.

FTB's in some areas - such as Redruth in Cornwall, which experienced 207 per cent growth, Ramsgate (181 per cent) and Wallasey in Merseyside (172 per cent) - may have struggled the most to make their first home purchase.

Martin Ellis, housing economist at Halifax, said: "The majority of towns that experienced the strongest price growth began the decade with lower than average property prices, which provided the platform for bigger price gains."

Mr Ellis also suggested that demand for property in coastal areas has experienced an above-average rise.

The sharp increases, which could be partly due to the economic slump of the 1990's, may result in alternatives to a mortgage - such as a shared mortgage or shared equity deal - becoming more popular.

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