Areas by the coast have seen the biggest decline in first-time buyer (FTB) affordability during the pandemic, as strong house price growth has outpaced the change in local salaries, Rightmove’s new affordability analysis has revealed.

The data is based on an average solo FTB, and assumes they have been able to save up a 10% deposit towards an average FTB-type property in their area.

Over half of the top 10 areas to see FTB affordability decline are close to or by the coast, with Adur in West Sussex topping the list. 

The average asking price for an FTB-type home in Adur is now 11.6 times the average salary for the area, up from 8.7 times before the pandemic.

Hertsmere in Hertfordshire is second, where FTB average asking prices are now 11.8 times the average local salary, compared with 9.6 times in 2019. 

Coming third is Richmondshire in North Yorkshire, where an average first home is now 8.2 times the local salary, up from 6.0 times.

The majority of areas that saw affordability improve during the pandemic are in London or in traditional commuter areas, albeit only slightly. 

Rightmove says affordability has improved in these areas due to local salaries increasing at a faster pace than house prices.

Average asking prices in Lambeth are now 11.8 times the average salary for the area, compared with 13.3 times pre-pandemic. 

In Ealing, it is now 10.3 times compared with 11.7 times three years ago, and in Reading, it is now 6.8 times compared with 7.8 times.

Across Great Britain, an average FTB-type home is now 7.2 times the average salary, up from 6.9 times in 2019. 

The average 10% deposit for an FTB home has risen by 17%, to £22,409. 

Rising asking prices and interest rates mean that the average monthly mortgage payment for new first-time buyers putting down a 10% deposit is now £1,032, representing an increase of 39% compared to the same time in 2019.

Despite affordability being stretched for many, enquiries for FTB-type properties are up on the more normal market of 2019. 

Demand for FTB-type properties is up 32% compared with 2019, though it has dropped by 9% compared with the frenetic market of last year.

Rightmove data expert Tim Bannister says: “The current picture of how affordability has changed for new FTBs trying to take out a mortgage looks very different in different parts of Great Britain.”

“It’s much harder for FTBs in the areas where prices jumped considerably over the past few years, especially when you add in six consecutive interest rate rises and average local salaries not keeping pace.”

“We’re still seeing the effects of the pandemic whereby prices for homes near the sea are at a premium, with house prices quickly outpacing local salaries. However, despite stretched affordability, we’re not currently seeing rising prices and interest rates having a significant impact on FTBs wanting to move.”

“Though demand for FTB homes has expectedly eased from the heady levels of last year, it’s still significantly higher than it was back in 2019, suggesting many first-time buyers are factoring in rate rises into their own affordability.”