- Record amounts paid by first time buyers
- Low mortgage rates mean repayments are more affordable but the average first-time buyer deposit is up 12.8%
First-time buyers are having to pay more to buy their first home according to estate agents Reeds Rains – with the average price in May being £173,282 up by 2.7% from £168,656 in April.
Despite this the average mortgage rate for first-time buyers has slipped further in May to 3.08% – a new record low – following a fall of 0.37 percentage points over the past year.
And while there is a climbing cost of purchasing a home, these cheaper rates mean mortgage repayments have not increased significantly as a proportion of first time buyer’s income. As of May, mortgage repayments accounted for 21.1% of income, just 1.7 percentage points more than a year ago.
Meanwhile, the average first-time buyer deposit currently sits at £27,669, up 12.8% (or £3,146) from £24,523 a year ago. When compared to the average first-time buyer income of £39,651, this represents an extra 29 days’ worth of salary. As a proportion of income, the average deposit has climbed 6.1 percentage points compared to May 2015.
Source: May 2016, First Time Buyer Tracker