The average price paid by first-time buyers over the last year has increased at the same level as those already on the property ladder, new research by Stipendium has revealed.

Analysis of house price data by Stipendium showed that the average first-time buyer in the UK currently pays £234,468 in order to get a foot on the property ladder, with this cost increasing by 12% in the last year. 

In the same period, the average price paid by existing homeowners has increased by 13% in the last year, meaning first-time buyers have seen the cost of homeownership climb at a similar rate as those in a significantly stronger position in the market.

Currently, the average first-time buyer house price now sits at 71% of the price paid by existing homeowners. However, in some areas of the market, they are paying a similar level in order to secure their first home.

In the City of London, the average first-time buyer is even paying 4% more than those already on the ladder.

Stipendium CEO, Christina Melling, commented: “The task of securing that first foot on the ladder remains unsurpassable for many and it’s easy to see why. 

“Not only has the average price paid by a first-time buyer kept pace with the wider market during a period of unprecedented house price growth, but the cost of a first home remains extremely high and is some 70% of the price paid by second and third rung buyers.

“In some areas, the average price of a first-home is almost on par with the price paid across the rest of the market, but first-time buyers are at a significant disadvantage as they don’t have the financial foundation of an existing home to sell.”

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