According to a research note released by the Halifax today, the cost of the average home in the UK has risen to a mind blowing £200,000!

The UK largest mortgage provider is well positioned to announce such findings, as their expertise in the mortgage market is unmatched in the UK.  When you consider that the average couple would traditionally obtain a mortgage based on about 3 times their joint incomes, they would need to be earning in the region of £70,000 between them to buy the “average” UK property!

It was only last year that a figure of £150,000 was been used as the cost of the average UK home, a figure that in itself was alarming for those looking to actually try and get onto the property ladder.  When you consider the amount of debt which a first time buyer would need to take on nowadays, it looks as though there has been a real sea change in the UK property market.  Many first time buyers are now being forced into social housing, whereby they would receive financial assistance to purchase a home within a housing scheme. 

This in itself can be counter-productive, because the housing association will take a large chunk of any potential gain in the increase in the value of the property, in exchange for assisting the buyer.  The massive demand for social house has further increased house prices, and there are rumours of further pent up demand for more homes in the social housing sector, which cannot be met at the moment.

Over the last 10 years we have seen a massive change in the housing market, with the first time buyer set to come under more and more pressure.  Quite how the government can rectify this situation remains to be seen, and the fact that there is so much social housing demand in the background will serve to support the housing sector for the foreseeable future.