Despite the improvement in the market, the average monthly average buyer mortgage payments are still £350, or 59 per cent higher than five years ago. This is based on the latest data from RightMove weekly staking tracker.
A typical first-time buyer currently pays a mortgage of £940 per month, compared to £590 per month five years ago, but payments are still £155 below the peak in July 2023
Average wage growth exceeded the price increase for first-time buyers, and increased borrowing capacity, but affordability is still very stretched:
Over the past five years, average revenue has increased by 30%, while first-time buyers have priced at 17%.
In London, the average first-time buyer type property is 6.8 times the average salary of two people nationwide, and now costs £500,066.
By comparison, the typical first home in the Northeast is 1.8 times the average joint income, at £132,854.
This study highlights the challenges faced by single-time first-time buyers, even for people with average wages, more than half of the areas are out of reach, even with a 10% deposit
As some porters are cheaper, as affordability is still extended, Kilmarnock is currently the lowest priced area for first-time home buyers, with prices under £100,000 for a typical first home
Matt Smith, mortgage expert at Rightmove, commented: “A higher mortgage rate means that the projection rate of a home needs to be considered as their ability to pay for a monthly mortgage every month, even if they can meet the asking price of the home.
“Another way to limit the affordability of some first-time buyers to get into the ladder is how much they can borrow. It is encouraging that regulators are thinking about how to borrow more home buyers in a responsible way, as we think that will help unlock more opportunities, especially for those with smaller deposits.”
