The headline figures for house prices in the last year have been in double figures as the market has heated up, but the costs are increasing even faster for those taking their first steps on the housing ladder.
New research from Rightmove has revealed that the cost faced by first-time buyers is rising at three times the rate of price inflation seen before the pandemic.
Over the past two years, the price of the average first-time buyer home has jumped by 13 per cent to almost £225,000, compared with four per cent over 2018 and 2019. Monthly mortgage payments have risen 22 per cent over that time, with recent interest rate rises adding to this.
While someone looking for a first time buyer mortgage in Liverpool may not have to pay a figure that high, the fact that costs have soared means it is a smart move to speak to the experts to get the best possible deal.
Putting off buying and renting instead is not a more favourable option, Rightmove’s study found, as these saw a similar rise in the two-yearly inflation rate from five per cent to 17 per cent.
Indeed, the survey found there has been a 35 per cent rise in demand for first-time buyer properties in the last two years, which has contributed to the price rises,
Rightmove’s data exert Tim Bannister said first-time buyers trying to save up a deposit are “chasing a fast-moving target as average asking prices for first-time buyer homes hit another new record, and rise more quickly than they did before the pandemic”.
Liverpool’s overall prices have been rising faster than the country as a whole, according to Office for National Statistics data. The typical home in the city was 13.8 per cent more expensive in May 2022 than 12 months earlier, compared with a national figure of 12.8 per cent.
However, the average price in Liverpool was £179,150, compared the mean English figure of £302,278.