The average first-time buyer in Britain is £42,000 worse off, owing to the property market boom following the pandemic, research by Stipendium has revealed.
Stipendium analysed the average price paid across Britain by first-time buyers, finding that prices have soared to £41,764 more than they were in January 2020, with the average property now costing £236,783.
Christina Melling, CEO of Stipendium, said: “The property market’s pandemic performance has largely been hailed as a success story” by those “who have seen the value of their home climb considerably,” it has made it harder than ever for “first-time buyers to overcome what was already a huge financial hurdle when it comes to purchasing their first home.”
The London Borough of Brent has seen the worst decline in first-time buyer affordability, reaching double the national average.
Those who recently purchased their first home in the area are paying an average of £453,762 for the privilege. That’s an increase of £89,753 compared to pre-pandemic market values.
In the South West, South Hams has seen an average £88,689 increase in first home purchases, while Elmbridge is averaging a £76,108 uplift.
Also among these areas with the highest growth in property prices are Bath and North East Somerset, Vale of Glamorgan, Hertsmere, Ceredigion, Wealden, Islington, St Albans and Harborough; all of which average an increase of at least £68,000.
Aberdeen has seen the smallest increases in Britain’s property market, with FTBs only paying an increase of £1,287 above pre-pandemic prices.
Most surprisingly, one borough of London has seen the second lowest price increases. FTBs in Lambeth have paid an average increase of only £6,570 following the pandemic.
Tower Hamlets, another London borough, also made the list of smallest uplifts in sixth place, averaging a £13,849 increase.
Also included on the list is Inverclyde, Copeland, Rutland, Hartlepool, South Tyneside, Allerdale and Gateshead. None of which averaged more than £17,000 above pre-pandemic prices.
Melling added that the nationwide increase in the housing market ultimately “demonstrates how it’s a one step forward, two steps back endeavour for those struggling to climb the ladder for the first time.”
