Graph Of The Week

This week’s graph comes from our latest House Prices & Affordability Index.

It shows that the two-tier market continues – prices on the rise for home movers (values are up seven per cent year-on-year) but falling for first-time buyers (down 4.1 per cent on last year).

Why the difference?

Those at the upper end of the market have higher incomes and more equity, and they’re also chasing a relatively limited supply of sought-after family homes.

Those at the first rung have lower incomes, are more mortgage dependent and are finding it much harder to get into the market – hence the continuing decline in values.

Interestingly, both ends of the market have strengthened in recent months. Since June, first-time buyer prices have risen by £1,153 or 0.8 per cent.

Over the past six months, home mover prices have surged by 7.2 per cent and are up 1.6 per cent month-on-month.

In the market as a whole, houses prices have risen by £6,000 over the past six months.

You can read the full report here: House Prices & Affordability Index.

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