Worcester June Monthly Market Update
How old are people when they buy their first home in our area?
Our friends in the U.S have been chasing the ‘American Dream’ for some time now, yet we Brits don’t really have a moniker for ‘making it’ in the UK. If we were to coin our version of the ‘British Dream’, we imagine it would be celebrated every time someone took their first steps on the property ladder.
First-time buyers play a pivotal role in the UK housing market and represent a key driver of demand. The average age of first-time buyers has been steadily rising over the last few decades as property has been less and less affordable in some parts of the country. However, schemes like shared ownership and Help to buy have helped younger people get on the ladder, putting downward pressure on average ages of firsttime buyers. We’ve used data from ResiAnalytics which uses affordability measures to calculate the average age of first-time buyers in the local market. The data shows that the average age of a first-time buyer here is 30.5. This is higher than the regional figure of 30, while the national average is 30.
The average price of a home in Worcester is £288,000 which means buyers need to stump up around £28,800 for a deposit. Add into the mix average gross earnings of residents in the area, which sit at £26,524, and you can start to see why the picture in our area looks like it does. If you’re thinking of purchasing your first property, visit our office for a friendly chat and we can discuss all the options available.
“The average age of first time buyers is now 30 years and 6 months.”
Annual sales levels by broad property type
A look at the annual sales charts for the last ten years offers a good indication of market activity within the local area. Patterns are in line with expectations given the nature of our area. While there is nothing too surprising about which type of properties have seen the most transactions, it’s useful to see how the market has performed since just before the credit crunch.
A quarterly index of house prices
This chart shows how house prices in the local area have moved over the last seven quarters. We’ve indexed flats, terraces, semi-detached and detached homes so they start at the same point so you can easily see how they’ve moved in relation to one another.
Distance to work
How far people travel to work says a lot about the nature of an area. For example, if people live and work in market towns there is likely to be a lot more community spirit to experience in daily life. When people are travelling further afield to work, they effectively spend their days on two different communities. It will be interesting to see if community spirit increases as people work more from home.