While it remains the norm for mega-rich celebrities to splash millions of pounds on their first home, with the likes of Molly-Mae Hague spending a whopping £4 million on her Cheshire pad, new analysis from Direct Line Home Insurance reveals that the average first-time buyer is now spending £223,751 on their first property.
First time buyers now need 24% more to secure their place on the property ladder than they did in 2016, equating to some £43,623, while the average salary of a Brit in their thirties has increased by just 10% over the same period, leaving them with a huge deficit to make up.
Back in 2016, the typical first-time buyer property was worth around six times the average salary of a 30 to 39-year-old, but this has since increased to around seven times the average salary for that age group, making homeownership increasingly hard to achieve.
Direct Line’s analysis suggests that the prices paid by first-time buyers are being influenced by the movements of those in their thirties across the UK. Indeed, the average first-time buyer property price rose by some 24% in the ten local authorities that saw the greatest influx of residents aged between 30 and 39 between 2016 and 2021. By contrast, in the ten authorities that saw the greatest decline in the number of residents aged between 30 and 39 during the same period, first-time buyer prices fell by 2%.
Overall, areas that saw an above average increase in residents aged between 30 and 39 saw first-time buyer prices rise by 22% between 2016 and 2021, compared to just 10% across areas with a below average increase of residents in the same age group.
A further breakdown of the data reveals that first-time buyer prices are rising fastest in Burnley, up 45% since 2016, followed by the Orkney Isles at 44% and Rossendale at 42%. Bury and Rutland completed the top five - both at 40%.
The average house price across these five councils was £119,735 in 2016 and this rose by £50,158 to £169,893 in 2021, an increase of 42%. In that period, the number of residents aged between 30 and 39 also increased by 9% compared to a national average of 5%.