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Topics: News
Lucy Devine
First-time buyers need more than £43,000 more than they would have needed six years ago to purchase their first home.
Since 2016, house prices for first-time buyers have been increasing by £23.89 per day on average, new research has revealed.
It means homeowners are now paying an average of £223,751 for their first home.
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According to new data from Direct Line Home Insurance, the figure is £43,623 more than it was six years ago in the UK, with certain regions seeing a sharper increase in property prices.
For example, Burnley in Lancashire has seen house prices rise by 45 percent over the past five years, while the Orkney Islands in Scotland has seen prices jump by 44 percent.
Meanwhile, Rossendale's property market is up by 42 percent and Bury by 40 percent.
Despite the sharp increase, the average salary of a Brit in their thirties has risen by just 10 percent, with the average first-time buyer's property now worth around seven times the average wage of a 30 to 39-year-old.
London is the most expensive region for first time buyers, with average prices of £440,590. The boroughs with the sharpest rise are Barking and Dagenham, Hackney, Waltham Forest, Redbridge and Havering.
These regions saw an increase of over £55,000 for first-time buyers.
Dan Simson, head of Direct Line Home Insurance, said of the rise: “The rate at which FTB prices have been increasing is frankly frightening.
“However, this generation of property owners are facing the challenge of dramatically increasing property prices in traditionally popular areas such as London and instead are buying in places that are less well known.
“We may see an even more dramatic emergence of these 'young towns & cities' with the increasing prevalence of remote working that enables people to be far more flexible as to where they live.
“Given the commitment people need to make to get on the property ladder, it is vital they protect their investment with insurance should the worst happen.”