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First-time buyers find a cheaper way to enter the market - but the road ahead is still steep

  //house-home.news-articles.net/content/2025/12/1 .. he-market-but-the-road-ahead-is-still-steep.html
  Published in House and Home on Monday, December 15th 2025 at 6:46 GMT by The Sun
      Locale: England, UNITED KINGDOM

First‑time buyers find a cheaper way to enter the market – but the road ahead is still steep

A fresh wave of hope is making headlines for the generation that has been trying, and often failing, to buy a house in the UK. A recent piece in The Sun argues that, thanks to a combination of changing market dynamics, government backing and the rise of new‑build developments, first‑time buyers now have more affordable options than ever before. Below is a full rundown of the story’s key points, plus a deeper look at the data, schemes and regional differences that give context to the headline.

1. The price‑pressure problem

The article opens by outlining the central issue: average UK house prices have reached an all‑time high of around £320,000, with mortgage rates hovering at 4.5 % and, in many regions, local property prices outpacing wage growth. For someone who has just finished university or is beginning a career, the gap between what they can afford and what the market demands is widening.

The Sun cites the Bank of England’s latest figures, noting that only 7 % of first‑time buyers can purchase a home outright with a deposit of 10 % or more. This figure has slipped further since the pandemic‑era boom in demand. The piece paints a vivid picture of young people juggling student loans, credit card debt and the high cost of living – all while watching the average house price climb.

2. Government schemes – a lifeline

A core part of the article argues that the government’s assistance programmes are now more effective than ever. The two main schemes highlighted are:

The article stresses that the Help to Buy Equity Loan now allows buyers to purchase a home worth as much as £430,000 without needing a 25 % deposit, a huge jump from the 5‑year 12 % deposit threshold that was in place in 2018. It also mentions that the scheme’s 20‑year repayment cap is set to be extended to 25 years in the upcoming fiscal budget, easing long‑term pressure on budgets.

The piece also gives a quick rundown of Shared Ownership in the form of a short comparison: buyers can lock in a lower deposit (as low as 5 % for a 25 % share) and gradually purchase more of the property over time. In practice, the article cites a local example from Sheffield where a 25 % share on a £260,000 home required a deposit of just £6,500.

3. New‑builds are suddenly cheaper

A surprising twist in the Sun’s narrative is that new‑build homes – typically the domain of the more affluent – have become a cheaper entry point for first‑time buyers. The article explains that developers, fighting to meet the UK’s 2‑million‑house‑plan, are now pricing up‑market projects at competitive rates to attract buyers.

The headline‑making figure is that the average price of a newly constructed home in England’s northern regions is now down by 8 % compared with the previous year, putting them roughly 12 % cheaper than comparable older homes. In cities like Leeds, Liverpool and Newcastle, the Sun reports that a brand‑new 2‑bedroom flat can be bought for as little as £165,000 – a significant discount compared to a similar older property priced at £190,000.

A section of the article quotes a developer, “We’re targeting young families and tech professionals who want a modern home without paying a premium.” The piece also highlights that many new builds now come with “no maintenance costs for the first five years” – a feature that can dramatically lower the cost of ownership for a first‑time buyer.

4. Regional differences – where is it cheaper?

While the Sun’s article is largely optimistic, it stresses that affordability remains uneven. In the South East and London, property prices are still too high for most first‑time buyers – with the average house costing over £500,000. In contrast, the North and East – particularly in the “New Deal for Communities” regions – see average house prices below £200,000.

A quick snapshot from the article’s data table:

The Sun emphasizes that first‑time buyers in the North can afford a 30‑bedroom house with the same deposit that would get a 10‑bedroom house in London – a powerful statistic that underlines the importance of geographical choice.

5. The role of mortgage rates

An important, and sometimes overlooked, element of the article is the impact of mortgage rates. While the Bank of England’s base rate is at 4.5 %, many lenders offer “starter mortgages” with introductory rates as low as 1 % for the first two years. The article argues that these “starter offers” can lower monthly repayments from the outset and provide a bridge for buyers who may otherwise be unable to afford the larger payment once the introductory period ends.

However, the article also cautions that a mortgage’s “break‑even point” is longer for buyers with smaller deposits. The Sun notes that a buyer who puts down 5 % on a £250,000 home will need to keep the mortgage for about eight years before the cost savings from a lower rate outweigh the higher upfront cost of a larger loan.

6. Future outlook – what can still be done?

The article closes on a hopeful note but stresses that more structural change is needed. Suggestions include:

1. Increasing the Help to Buy Equity Loan limit to £600,000 in London and £400,000 elsewhere, as proposed in the forthcoming budget.
2. Extending shared ownership to include 15 % shares, making it even more accessible.
3. Providing targeted tax relief for properties purchased under £200,000, to keep low‑income buyers out of the property ladder.
4. Boosting local housing supply in high‑price areas through “greenfield” projects that allow for new, affordable homes.

It concludes by reminding readers that while the market has shifted to give first‑time buyers a fighting chance, success still requires careful financial planning, a willingness to look outside the traditional heartlands and a keen eye for emerging development opportunities.

Bottom line

First‑time buyers are no longer a monolith of hopelessness; the article paints a more nuanced picture. Government schemes, cheaper new‑builds, and a clear regional price disparity mean that if buyers are strategic about where they look, and if they take advantage of the available financing tools, they can indeed enter the market at a more affordable price point. However, the article is a reminder that this is still a highly competitive and complex market – one where careful financial management and an open mind to alternative purchase routes are vital.