First-time buyers are purchasing homes for almost £450,000 less than existing homeowners in Britain’s most extreme example of the price divide between different types of buyer.
Analysis of UK House Price Index data by Yopa finds the average first-time buyer purchase in Elmbridge costs £500,171, compared with £948,215 for former owner-occupiers.
The £448,044 difference means first-time buyers are purchasing at a price point 47.3% below existing homeowners in the Surrey borough.
Across Great Britain, first-time buyers pay an average £229,107 for their home – £106,245 or 31.7% below the £335,352 average paid by former owner-occupiers.
BIGGEST GAPS
Brentwood records the second-largest percentage difference, with first-time buyers paying an average £369,662 compared with £677,883 among existing owners – a gap of 45.5%.
Tandridge follows at 45.2%, with Mole Valley at 44.7%, Surrey Heath at 42.7% and Three Rivers at 42.6%.
Woking and Guildford both record differences of 42.4%, followed by East Hampshire at 42.3% and Waverley at 42.1%.
At regional level, the South East has the widest gap at 36.7%, followed by Scotland at 34.8% and London at 32.3%.
London has the largest difference in cash terms, however, with first-time buyers spending an average £471,629 – £224,981 less than existing homeowners.
DIFFERENT MARKETS
Verona Frankish (main picture), CEO of Yopa, says: “Headline house prices don’t necessarily tell the full story for those looking to buy their first home, as first-time buyers generally enter the market at a very different price point to those who are already on the ladder.
“Of course, a larger first-time buyer discount doesn’t necessarily make an area more affordable. Elmbridge is a prime example, where the average first-time buyer is still paying more than £500,000 despite purchasing at a substantially lower price point than existing homeowners.
“What it does demonstrate is that first-time buyers are generally entering at a different point of their local property market, targeting homes that suit both their needs and their budgets, while those already on the ladder are often purchasing further up it.”
