The average first-time buyer mortgage payment is still £350 more each month, or 59% higher, than five years ago despite market improvements. This is according to the latest data from Rightmove’s weekly mortgage tracker.

A typical first-time buyer is currently paying a mortgage of £940 per month, compared with £590 per month five years ago, however, payments are still £155 lower than the peak in July 2023

Average wage growth has outpaced first-time buyer price rises, increasing borrowing power, however affordability remains very stretched:

Average earnings have risen by 30% in the last five years, versus 17% for first-time buyer prices

In London, an average first-time buyer type property is 6.8 times the national average wage of two people, now priced at £500,066.

This compares with the North East, where a typical first home is 1.8 times an average joint income at £132,854.

The research highlights challenges for single first-time buyers, with more than half of regions out of reach for someone on their own with an average wage, even with a 10% deposit

As some movers look to cheaper areas as affordability remains stretched, Kilmarnock is currently the lowest-priced area for first-time buyers, with the price tag of a typical first home under £100,000

Rightmove’s mortgage expert Matt Smith commented: “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.

“Another measure of affordability which is restricting some first-time buyers from getting onto the ladder is how much they can borrow. 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.”