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Potentially the most ‘up and coming location’ for first time buyers is…

Monday 22nd July 2013

A number of would-be first time buyers are being denied an opportunity of getting a foot onto the property ladder because of sky-high prices. For many, the only choice is to move to up and coming areas that feature plenty of affordable homes, which ideally offers good prospects for capital growth.

Nationwide recently reported that there has been an 11% increase in Newcastle house prices over the past 12 months, with the average property in the area now costing £173,296 compared with £154,728 this time last year. This increase in the value of local property is the most significant rise across the whole of the UK, outside of London.

The increase in value has been attributed to a wider availability of affordable products in the mortgage market and lower interest rates which have helped more people onto the housing ladder, according to mortgage sourcing specialist, FirstMortgage.

Further to this, the City’s council has announced that they will be building 6,000 new affordable homes between Newcastle and Gateshead this year as the city centre undergoes a £200 million regeneration project; creating 2,200 new jobs in the area and therefore proving to be increasingly attractive to first time buyers.

Rising property values in Newcastle are reflective of a more nationwide trend, as prices have increased by 2.9% over the last year, whilst mortgage lending increased by 23% in June, according to chartered surveyors E.Surv. Lending to first time buyers reported the greatest increase, with the Council of Mortgage lenders stating that lending to this group has increased by 42% over the last year across the whole of the UK.

Ian McGrail, Managing Director of FirstMortgage, says: “The renovation of the city centre combined with a widespread increase in employment opportunities make Newcastle a great choice for first time buyers. Increased mortgage availability and further affordable housing in the city mean we are seeing more and more people in the area take their first step onto the housing ladder.”

              

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