House prices increasing by £24-a-day

Someone getting on the property ladder typically needs £43,623 more than they would have in 2016, Direct Line Home Insurance said.

Vicky Shaw
Thursday 09 June 2022 10:16 BST
House prices for first-time buyers have been increasing by £24 per day on average, according to analysis (Yui Mok/PA)
House prices for first-time buyers have been increasing by £24 per day on average, according to analysis (Yui Mok/PA) (PA Archive)

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House prices for first-time buyers have been increasing by £24 per day on average, according to analysis.

The average first-time buyer faced paying £223,751 for a property in 2021.

Someone getting on the property ladder typically needed to find £43,623 more than they would have in 2016, Direct Line Home Insurance said.

The North West of England has seen the greatest percentage increase in first-time buyer prices, rising by 35% (£43,812) over five years to 2021.

London is the most expensive first-time buyer market, with average prices reaching £440,590 last year, according to the research.

A typical first-time buyer property is now worth roughly seven times the average salary of someone aged in their 30s, compared with a multiple of six times in 2016, Direct Line found.

It used Office for National Statistics (ONS) figures in its calculations.

Dan Simson, head of Direct Line Home Insurance, said: “The rate at which (first-time buyer) prices have been increasing is frankly frightening.”

Here are average house prices for first-time buyers in 2016, followed by 2021, and the cash and percentage change, according to Direct Line:

– North West, £125,443, £169,256, £43,812, 35%

– Wales, £126,901, £170,246, £43,345, 34%

– West Midlands, £147,764, £192,979, £45,215, 31%

– Yorkshire and the Humber, £129,152, £168,506, £39,354, 30%

South West, £193,408, £245,336, £51,928, 27%

– Scotland, £113,520, £139,159, £25,639, 23%

– East of England, £224,061, £268,568, £44,507, 20%

– North East, £109,489, £130,956, £21,467, 20%

South East, £245,557, £286,716, £41,159, 17%

– London, £410,266, £440,590, £30,323, 7%

Read More: Independent Advisor can help you find a great deal on home insurance

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