First-time buyers face surge in house prices

The average cost of a first home rose by 10.7% in a year.
The average cost of a first home rose by 10.7% in a year. Credit: Chris Ison/PA Wire

First-time buyers face having to pay 10.7% more to get on the property ladder than they did a year ago, new figures show.

The typical starter home now costs £199,000, according to the Office for National Statistics.

The news follows calls for the Bank of England to take action against spiraling values, with some urging a dilution of the controversial Help to Buy scheme for buyers with lower deposits.

The Government says the scheme is working as intended to reach people who need its help the most.

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