The average home buyer budget in Leeds has surged by over 16% in the past year as homeowners adjust to fluctuating mortgage rates.
Significant Increase in Home Buyer Budgets
According to the leading property website newhomesforsale.co.uk, the latest data shows that the average budget for home buyers in Leeds now stands at £274,592. This marks a 16.02% increase from the £236,674 budget recorded in Q1 2023.
Deposits on the Rise
The website, which lists nine new build developments in and around Leeds city centre, also revealed that home buyers have accumulated an average deposit of £37,562, representing 13.68% of their target property purchase price.
Comparison with National Averages
With this budget being just shy of England’s average property price of £282,776, as reported by the UK House Price Index in March 2024, home buyers in Leeds can afford a 2–3-bedroom house or apartment, depending on the location.
Impact of Interest Rates
This development comes as the Bank of England maintained the interest rate at 5.25% in May 2024, leading to an increase in mortgage rates across all major lenders at the start of June 2024.
Expert Insight
Discussing the latest data, Vernon Pethard, Founder and Director of newhomesforsale.co.uk, said:
“The last 18 months or so have been quite challenging for the UK property market, as home buyers battle with volatile and stubbornly high mortgage rates versus their desire to move house – be that to a larger property, to downsize or move locations. However, despite the uncertainty that surrounds mortgage rates, property prices have continued to hold strong, and in many regions throughout England have actually increased in value. This includes a slight increase in Leeds, where the average price for detached properties rose by 4.7% and the average price for terraced properties increased by 3.4%.”
About New Homes for Sale
Established in 1998, New Homes for Sale features over 2,400 developments from national house builders, housing associations, and estate agents from across the UK, securing an unrivalled position within the new build sector.
