Rightmove has revealed that the average monthly mortgage payment for a first-time buyer property was £940, up from £590 five years ago.
Despite improvements in the mortgage market since last year, average payments remained just £155 below the peak of 2023.
Average earnings increased by 30% over five years, outpacing the 17% increase in first-time buyer property prices, slightly boosting borrowing power.
However, affordability remains tight, prompting Rightmove to support regulatory proposals to responsibly increase borrowing capacity for first-time buyers.
In London, properties costed 6.8 times the national average wage for two people, with an entry price of £500,066, while in the North East, it was 1.8 times at £132,854.
Kilmarnock in Ayrshire was named the cheapest area for first-time buyers, with an average asking price of £84,325.
Greenock in Inverclyde and Grimsby in Lincolnshire followed, with average prices of £88,862 and £93,427, respectively.
Matt Smith, mortgage expert at Rightmove, said: “Higher mortgage rates mean home-movers need to consider how much they can afford to pay each month on a monthly mortgage, even if they can meet the asking price of a home.
“It’s encouraging to see that the regulator is considering how they may be able to enable first-time buyers to borrow more in a responsible way, as we think this will help to unlock more opportunity, particularly for those with smaller deposits.”
Toby Leek, president of NAEA Propertymark, said: “Many first-time buyers will no doubt be relieved to hear that wage growth has outpaced first-time buyer prices.
“However, long-term affordability issues remain for buyers in general due to a combination of interest rates remaining higher than they have been used to, inflation recently taking a slight rise, and a lack of housing supply.”
Leek added: “Recent market data shows that the average first-time buyer currently sits around 33 years old, which is almost a 10 per percent increase compared to only ten years back.
“As well as the continued increase in the average age of first-time buyers, they also, on average, had to make a deposit of over £60,000 and typically paid around £310,000 for their first home reiterating the consistent challenges and strains placed on their affordability.
“Propertymark looks forward to hearing more details from all devolved nations on regarding future support for first time buyers as the year progresses.”
