Over the past two years first-time buyer asking prices have risen three times quicker than the previous two years, said Rightmove.

The property portal said that average first-time buyer asking prices are at a record £224,943, 13% higher than two years ago (or £17,557), compared to a 4% rise in the two previous years.

It added that saving up for a deposit has become increasingly difficult for aspiring first-time buyers. The average first-time buyer deposit of 10% has risen by £2,560 over the past two years, compared with a jump of £807 in the two years prior.

Average monthly mortgage payments for new first-time buyers are also 22% higher than two years ago. Monthly mortgage payments for a new first-time buyer based on the current average rate is £976, £173 more than two years ago. Average monthly mortgage payments rose just £41 in the previous two years.

Barriers to buying

Those planning to buy their first home say that rising house prices and soaring energy bills are their biggest challenges, but 43% still hope to be able to buy within the next three years.

Tim Bannister, Rightmove’s data expert, said: “For would-be first-time buyers who are trying to save up a deposit, they are chasing a fast-moving target as average asking prices for first-time buyer homes hit another new record, and rise more quickly than they did before the pandemic.

“Those that have been able to save up a deposit are now facing rising interest rates when considering what they can afford to repay each month. Given the economic uncertainty at the moment, first-time buyers may seek some financial certainty by locking in a longer fixed-rate mortgage term now, before interest rates rise again.”