First-time buyers ‘typically paying £20,000 below the market average for a home’

Zoopla said people taking their first step on the property ladder are purchasing a home at an average of £244,100.

The average monthly mortgage payment for those getting on the property ladder in 2023 is around £990, according to Zoopla (Anthony Devlin/PA) (PA Archive)

First-time buyers are typically buying homes priced at around £20,000 below the market average, according to a property website.

People taking their first step on the property ladder are purchasing a home at an average of £244,100 – £20,300 (8%) below the local market average, Zoopla said.

Elevated mortgage rates mean that the average first-time buyer who got on the property ladder in the fourth quarter of 2023 is paying around £213 more per month on average on their mortgage than if they had bought their first home in the fourth quarter of 2022, according to Zoopla’s calculations.

First-time buyers are in a stronger position in the current buyer's market

Izabella Lubowiecka, Zoopla

The average monthly mortgage payment for those getting on the property ladder in 2023 is around £990, while for those who bought a year earlier it is around £777, Zoopla calculated.

It used UK Finance figures, taking into account average deposit sizes, to make the calculation.

Izabella Lubowiecka, senior property researcher at Zoopla, said: “First-time buyers are in a stronger position in the current buyer’s market so we encourage them to be resourceful and assess all the options available to them.”