Paula John, editor of Your Mortgage magazine, stated that many people were having to buy homes further out as prices in the capital had become too expensive for them.
Furthermore, she said that in many cases, first-time buyers were having to sacrifice the type of property they would ideally have liked in favour of a cheaper alternative.
She said first-time buyers were becoming ‘quite creative’ when it came to ways to get onto the property ladder, highlighting the trend of single first-time buyers clubbing together with friends or siblings to buy a home.
According to government figures, the average amount first-time buyers pay for a property has increased at a faster rate than their income. The Office for National Statistics said that between 1995 and 2005, the average amount paid rose by 204 per cent, compared with just a 92 per cent increase in first-time buyers’ salaries.
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