Rents and first-time buyer mortgages at all-time highs

First-time buyer house prices and rents have risen three times faster in the past two years, according to Rightmove. Monthly rental payments are soaring at unprecedented rates data from the property site has revealed - increasing by 17% since 2020, compared to 5% in the two years before that. Wages rose by 14% in the same period, meaning income has failed to keep up. The average 10% deposit now stands at £22,493, 13% higher than two years ago, Rightmove found. Average monthly mortgage payments have climbed 22%. A new first-time buyer now typically pays £973 a month based on the average mortgage rate, up £173. In the previous two years the increase was just £41. Tim Bannister, of Rightmove, said that chasing soaring house prices had put first-time buyers at a disadvantage if they were unable to live with parents or family members while saving. The average monthly rental payment is up £128 over the last two years, with a tax crackdown on landlords driving many out of the market and reducing supply. A survey conducted by Rightmove found those planning to buy their first home said the biggest challenges they face are rising house prices and soaring energy bills. Fewer than half (43%) said they hoped to be able to afford a home within the next three years. Two-thirds of respondents had already started saving towards a deposit, the survey found. However, Rightmove said demand for first-time buyer properties is up by 35% compared to 2019, suggesting many are still determined to get on the ladder despite stretched affordability. 

The Daily Telegraph