Pandemic impacts first-time buyer prices

As the analysis of the market shows, prices are 17% higher - an increase of £128 - than they were two years ago when compared to a five percent rise in the two previous years. However, the average first-time buyer asking prices are at a record £224,943, 13% higher than two years ago. 

Rightmove’s data expert, Tim Bannister, believes it’s a challenge for would-be first-time buyers who are trying to save up for a deposit. This is because they’re chasing a fast-moving target as average asking prices for first-time buyer homes hit another record - increasing faster than they did before the pandemic. 

He explained: "For those that aren’t able to live with parents or family members while saving, they also have to manage paying record rents both inside and outside of London. 

"We understand how difficult this challenge can be, and something we’ve seen more of over the last couple of years, particularly with working from home becoming more common. People are now looking further away or at a greater number of different areas when looking to move, to see what is available within their budget." 

He also explained that people who’ve been able to save up a deposit are now facing rising interest rates when considering what they can afford to repay each month. Given the economic uncertainty at the moment, first-time buyers may seek some financial certainty by locking in a longer fixed-rate term mortgage now, before interest rates rise again.