First-time buyers face higher inflation

House price inflation is still higher for first-time buyers, new figures have revealed.

The Department for Communities and Local Government (DCLG) figures for house prices in December revealed that the average house price overall had risen by 0.4 per cent.

However, it also showed that during the month the increase in the price of homes bought by first-time buyers was higher at 0.5 per cent.

This difference may be an indication that if prices are starting to rise again the brunt of the change could be borne by those getting their first foot on the housing ladder.

Some may decide this is a good reason to consider the self build option as an alternative.

Another reason for this could be the kind of properties first-time buyers tend to buy.

Increasingly this group are forced to buy flats to get on the housing ladder, this type of home making up 37 per cent of first-time buyer purchases in 2007, the same number as terraces, in 71 per cent of UK towns, MSN Money reports.


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