The Cost of Getting on the Property Ladder: A Steep Climb for First-Time Buyers

Average UK house prices rise by 19% since 2019

Getting onto the property ladder has never been more challenging for first-time buyers in the UK. According to a recent report by Rightmove, the average first-time buyer mortgage payment has risen by 61% since 2019, from £667 to £1,075 per month. This increase is largely due to rising house prices and mortgage rates.

London house prices reach over half a million pounds

The report highlights that the average asking price of a first-time buyer home in the UK is now £227,757, with London prices reaching a staggering £507,049. The North West of England has seen the largest increase in asking prices, with a 33% rise since 2019.

First-time buyers struggle to save for deposit

Tim Bannister, Rightmove’s property expert, notes that the increase in mortgage rates has outstripped the pace of earning growth, making it even harder for first-time buyers to get onto the property ladder. Many are now considering longer mortgage terms or looking at cheaper homes to reduce their monthly payments.

Reducing empty homes is key to addressing housing shortage

The findings come as another property website, Zoopla, reveals that building more affordable homes, tackling homelessness, and reducing the number of empty homes are top priorities for voters in the upcoming general election. Helping first-time buyers onto the property ladder and controlling rent rises in the private sector are also high on the agenda.

Mortgage rates expected to fall

Despite the challenges, there is hope on the horizon. With Consumer Prices Index (CPI) inflation slowing to its 2% target, a base rate cut is expected, which would help reduce mortgage costs for first-time buyers.

Homeownership should be within reach for all

Nathan Emerson, chief executive at Propertymark, emphasizes that homeownership should never be out of reach for anyone. With the next general election approaching, Propertymark is calling for targeted support for first-time buyers from the incoming government.

The struggle to get onto the property ladder is a pressing concern for many in the UK. As the cost of becoming a homeowner continues to rise, it’s clear that something needs to be done to address the housing shortage and make homeownership a realistic goal for all.