The typical first-time buyer property price in the UK is now 5.9 times the average earnings income of buyer looking to get onto the property ladder, new analysis by Lloyds Bank has shown.

This is down from a ratio of 6.2 times last year as a combination of lower interest rates, higher incomes and limited property price growth has improved first-time buyer affordability.

Lloyds’ figures were based on a typical first property costing £237,518, up 2.4% over the last year, while average incomes are up by 6.2% to £40,021.

The last time the property price to income ratio for first-time buyers sat below 6.0 was almost 10 years ago, at the end of 2015 when it was also 5.9.

Typical monthly mortgage costs have risen by just 0.1% for first-time buyers over the last year to £1,087. Lloyds suggested this is a result of lower interest rates offsetting the modest increase in property prices.

“Buying your first home is still a big challenge, but things are moving in the right direction,” commented head of mortgages at Lloyds, Amanda Bryden.

“Lower mortgage rates, stronger wages and slower house price growth mean it’s becoming a little easier to get on the ladder – the best it’s been for several years.

“Big national numbers often make the headlines, but the reality is that the housing market can look very different from one town to the next. If you’re searching for your first home, being flexible on location can really help – sometimes moving just a few miles from your preferred area can unlock much better value.”

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