Average house prices soar in North Somerset
PUBLISHED: 06:11 13 August 2018
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First-time buyers are struggling to get onto the housing ladder as house prices rise and the number of affordable houses being built drops.
Statistics show there has been a 6.7 per cent increase in the price of houses in North Somerset in the past 12 months, with the average home costing £259,508 – £32,602 above the UK average.
The Office of National Statistics revealed just 3,947 homes where sold in the district last year, 12 per cent fewer than in 2016 and Westcoast Properties branch manager Nick Todd believes it is to do with the lack of affordable housing being built.
Mr Todd said: “I believe in part the lack of affordable homes being built over the past decade has had an effect on those first-time buyers who may have been able to make a purchase.
“There are a number of reasons why we have experienced a slow down last year.
“It is mainly a result of a knock in confidence in the markets as well as the changes made to second-home purchasers and buy-to-let landlords.
“Essentially it is becoming less attractive to new landlords who may be considering purchasing an investment property as the costs are much greater. With this in mind, those costs are likely to rise further as we head into 2019.”
But, Mr Todd says it makes more ‘financial sense’ to invest in a home, with many people paying more in rent a month than the minimum mortgage payments.
He added: “We have close links to major cities such as Bristol, fantastic transport networks with M5 and M4 corridors, plenty of major employers in the region such as Airbus, MoD and many others.
“Generally the schooling in our region scores highly and with stunning scenic countryside on the doorstep, there are many reasons for purchasers to look here.”
But with the average homeowner seeing a £74,000 rise in their property value since 2013 – it is becoming difficult for first-time buyers to purchase a house despite help from Government initiatives.
Mr Todd said: “A large percentage of first-time buyers have, over the past number of years, held off from purchasing and saved greater deposits allowing them to take advantage now of the schemes in place to make purchasing a home an ideal option.”
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