Affordable housing schemes have helped the most first time buyers get onto the property ladder in 7 years.
Recent official figures show that, since their introduction in 2013, affordable housing schemes have helped nearly 100,000 people into new homes with 80% of those being first time buyers.
The latest Halifax report shows that the average price paid by first time buyers, using affordable housing schemes, is £150,361, saving a full 10% compared to first time buyers for all housing. The average price of all first time buyers currently sits at 7% below the national average house price.
London offers by far the most attractive option for first time buyers with affordable housing schemes offering up to 36% lower than the capital average house price of £367, 961. However properties in London are still the most expensive found on the schemes with the average at £323,148 compared to lowest at £147,437 in the North of England.
Craig Mckinlay, mortgages director at Halifax, said “Many of the affordable home ownership schemes available have been designed to help first time buyers onto the ladder…the latest figures show that this has been successful.
“As the economy begins to recover and mortgage interest rates remain at very low levels. We expect to see continued growth in first time buyers in the second half of this year.”
The greatest savings of affordable housing schemes are found in London.
The Halifax report also shows where first time buyers bought houses over the past year with 17% buying in Scotland compared to a 12% national average over the same time and in the South East, it is only 15% compared to a national average of 20%.
The report also shows the average salaries of those using the affordable housing scheme, which stands at £31,886, around 5% lower than the national average. London of course has the highest average at £50,254 compared to the lowest of £29,031 in the North West.
In terms of age groups, 37% of all affordable housing scheme users being between 20 and 29 years old. This compares to 25% of all housing transactions being carried out by the same age group.