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Property Prices in North West Market Climb by Over a Third in 5 Years

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    How Do House Price Changes Affect First-Time Buyers?

    The latest data and analysis from Rightmove has revealed that the biggest jump in first-time buyer prices has been recorded in the North West and Wales.

    The study aims to highlight the current challenge facing first-time buyers in the UK property market.

    They found that average first-time buyer mortgage payments have risen by a staggering 61% since the last election in 2019. The average payment has increased from £667 per month to £1075. This rise has significantly outpaced wage growth in the same period, up by an average of 27%.

    In order to collate this data, the researchers assumed that the average first-time buyer is taking out a five-year fixed mortgage spread over 25 years at 80% LTV. The average rate for this type of mortgage is now 5.09%, much higher than the 2.24% 2019 average.

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    North West Prices Jump by 33% Since 2019

    Rightmove’s report shows that the average price of a first-time buyer home is £227,757, an increase of 19% since 2019. However, looking at regional differences, some areas have experienced much higher price growth. The North West has seen the biggest climb in first-time buyer prices, at 33% above 2019, while London has had the smallest percentage increase of 6% in five years.

    Local trends also reveal that 16 of the top 20 areas in Great Britain for fastest-growing first-time buyer prices are located in the North West and Wales.

    Further Reading: Learn more about the North West property market with our guides covering buy-to-let Liverpool and off-plan property Manchester.

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      What Does This Mean for the Future of the Property Market?

      The affordability challenges facing first-time buyers have already had a massive impact on the property market. More people are now renting for longer rather than getting on the housing ladder, which has driven up tenant demand to unprecedented levels and caused rental costs to rapidly soar to record heights.

      According to Rightmove, the best and most immediate way to alleviate challenges for first-time buyers is for the Bank of England to announce a rate cut, which is likely to lead to lower mortgage rates.

      Tim Bannister, Rightmove’s property expert, said: “If mortgage rates are reduced, this will help first-time buyers in the short term more so than election housing promises.

      “We hope that the next government can support first-time buyers with well-thought-out policies, which address the difficulties of saving up a large enough deposit and being able to borrow enough from a lender.”

      Read more about the UK property market with our dedicated buy-to-let area guides, covering topics such as Newport investment properties and Canary Wharf investment properties.

      Property Prices in North West Market Climb by Over a Third in 5 Years

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      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.