LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

New data shows extent of average first-time buyer mortgage payment since last election – London Wallet

Mark Helprin by Mark Helprin
June 24, 2024
in Real Estate
New data shows extent of average first-time buyer mortgage payment since last election – London Wallet
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


You might also like

Buy-to-let lending rises sharply in first quarter of 2025 – London Wallet

Chancellor warned of housing market stagnation without urgent reform – London Wallet

Letting agents should see Renters’ Rights Bill as ‘opportunity’ – London Wallet

The average first-time buyer mortgage payment has risen by 61% since the last election year of 2019, new research shows.

A new first-time buyer study from Rightmove reveals that over the last five years, the average mortgage payment for a typical first-time buyer home has risen from £667 per month to £1,075 per month, as average mortgage rates have risen and remained elevated.

The increase in average mortgage payments for first-time buyers has significantly outpaced wage growth. Over the same five-year period, average wages are up by 27%.

The mortgage payment calculations assume first-time buyers are taking out a five-year fixed mortgage, spread over 25 years, at 80% Loan-To-Value (LTV). An 80% LTV mortgage is the average for first-time buyers according to UK Finance data.

The average five-year fixed, 80% Loan-To-Value mortgage rate is now 5.09%, compared to 2.24% in 2019.

Meanwhile, the average first-time buyer home is now £227,757, rising by 19% since 2019, however prices have risen more sharply in different areas. At a regional level, the North West has seen the biggest jump in first-time buyer prices at 33% above 2019, while London has seen the smallest rise of just 6% in five years.

This is reflected in local trends, with 16 out of the top 20 areas across Great Britain that have seen the biggest jump in first-time buyer prices being located in the North West and Wales, though Bolsover in the West Midlands tops the list at a 55% rise in average asking prices.

With the study highlighting how significant the increase in mortgage rates has been for first-time buyer affordability, Rightmove suggests that a Bank of England rate cut will have the most immediate benefit for those trying to get onto the ladder, should it as expected lead to lower mortgage rates.

Rightmove’s key ask of the next government is that they prioritise long-term solutions and policies to help more first-time buyers onto the ladder, over short-term policies that only help very small groups of people.

Tim Bannister, Rightmove’s property expert, commented: “As rates have increased over the last five years, the amount that a typical first-time buyer is paying each month on a mortgage has outstripped the pace of earning growth. Some first-time buyers are looking at extending their mortgage terms to 30 or 35 years to lower monthly payments, or looking at cheaper homes for sale so that they need to borrow less.

“If mortgage rates reduce, this will help first-time buyers in the short term more so than election housing promises. We hope that the next government can support first-time buyers with well-thought out policies, which address the difficulties of saving up a large enough deposit and being able to borrow enough from a lender.”

Regional first-time buyer prices

Area Average first-time buyer asking price 2024 Increase in asking price versus 2019
East Midlands £192,497 +24%
East of England £272,539 +14%
London £507,049 +6%
North East £131,809 +22%
North West £177,588 +33%
Scotland £139,198 +22%
South East £296,238 +15%
South West £256,687 +24%
Great Britain £227,757 +19%
Wales £180,458 +28%
West Midlands £193,957 +24%
Yorkshire and The Humber £178,871 +30%

 

Local authority first-time buyer prices

Area Average first-time buyer asking price 2024 Increase in asking price versus 2019
Bolsover £151,697 +55%
Merthyr Tydfil £123,672 +51%
Blaenau Gwent £119,294 +48%
Harlow £320,640 +47%
Powys £197,014 +46%
Rhondda Cynon Taf £128,507 +44%
Bolton £139,729 +42%
Hyndburn £115,515 +42%
Rochdale £146,021 +41%
Exeter £268,654 +41%
Oldham £152,792 +41%
Isle of Anglesey £210,052 +39%
Neath Port Talbot £121,922 +38%
Bury £176,639 +38%
Caerphilly £151,704 +37%
Pendle £111,816 +37%
Bridgend £160,632 +37%
East Lindsey £174,380 +36%
Rossendale £144,656 +36%
Wigan £135,256 +36%

 





Source link

Share30Tweet19
Previous Post

Comings & Goings – London Wallet

Next Post

Well-established estate agency expands into Yorkshire – London Wallet

Mark Helprin

Mark Helprin

Recommended For You

Buy-to-let lending rises sharply in first quarter of 2025 – London Wallet
Real Estate

Buy-to-let lending rises sharply in first quarter of 2025 – London Wallet

July 24, 2025
Chancellor warned of housing market stagnation without urgent reform – London Wallet
Real Estate

Chancellor warned of housing market stagnation without urgent reform – London Wallet

July 24, 2025
Letting agents should see Renters’ Rights Bill as ‘opportunity’ – London Wallet
Real Estate

Letting agents should see Renters’ Rights Bill as ‘opportunity’ – London Wallet

July 24, 2025
Big nine regional office markets see strongest H1 take-up in six years | Property Week
Real Estate

Big nine regional office markets see strongest H1 take-up in six years | Property Week

July 23, 2025
Next Post
Well-established estate agency expands into Yorkshire – London Wallet

Well-established estate agency expands into Yorkshire - London Wallet

Related News

Exxon Mobil reports record earnings that beat expectations and revenue that fell but topped forecasts

Exxon Mobil reports record earnings that beat expectations and revenue that fell but topped forecasts

April 28, 2023
Bitcoin was pronounced dead 415 times, now it battles for 0K

Bitcoin was pronounced dead 415 times, now it battles for $100K

November 29, 2024
Carvana’s stock rallies as company boosts outlook, cheers ‘lasting business improvements’

Carvana’s stock rallies as company boosts outlook, cheers ‘lasting business improvements’

August 9, 2023

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?