The average UK first-time buyer is now almost £42,000 worse off when it comes to buying a first property, new research by Stipendium has suggested.

This increase comes as the housing market boom resulting from the pandemic has driven up the cost of homeownership. 

Stipendium analysed the average price paid by first-time buyers and found that across the UK, prospective buyers are now paying an average £236,783. The figure is now £41,764 more than the average price being paid in January 2020. 

According to the research, the London Borough of Brent has seen the worst dent to first-time buyer affordability, with the average price paid up by more than double the national average. Those buying their first home in the borough and now paying £453,762, a £89,753 increase compared to pre-pandemic market values. South Hams in the South West has seen a £88,689 increase in the average price paid for a first home, with first-time buyers in Elmbridge also now paying £76,108 more. 

Bath and North East Somerset (£75,256) and Vale of Glamorgan (£72,303) have also seen some of the largest increases to the average price paid by a first-time buyer, as have Hertsmere (£71,403), Ceredigion (£69,878), Wealden (£69,535), Islington (£68,773) St Albans (£68,524) and Harborough (£68,298). 

“The property market’s pandemic performance has largely been hailed as a success story and this is certainly true for those who have seen the value of their home climb considerably,” commented Stipendium CEO, Christina Melling.

“However, it’s also made it even harder for the nation’s first-time buyers to overcome what was already a huge financial hurdle when it comes to purchasing their first home. 

“In some areas, the cost of getting that first foot on the ladder has climbed by almost £90,000 since the start of the pandemic and, while that may seem like a lifetime ago, it really demonstrates how it’s a one step forward, two steps back endeavour for those struggling to climb the ladder for the first time.”

Share Story: