UK’s First-Time Buyers See House Prices Climb

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First-time buyers paying as much as £73k more to get on the ladder since the market reopened

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The Climbing Cost Of Houses For First Time Buyers

Research by the new build snagging and defect management experts, BuildScan, has revealed where the nation’s first-time buyers have seen house prices climb the most since the market reopened in May of last year.

BuildScan analysed first-time buyer house prices from the Land Registry house price records, looking at how they have changed between May 2020 and January 2021 (latest data available).

While the stamp duty holiday has helped boost buyer demand, the consequence has been a sharp uplift in house prices and this is no different for those taking their first step onto the ladder. In May of last year, the average first-time buyer in England was paying £207,068 for their first home, however, this cost has now climbed by £14,675 to £221,743 today; an increase of 7%.


Of course, some regions have seen a far greater increase and in London, the average FTB is now paying £22,631 more to buy their first home than they were back in May of last year.

The North West (£16,870), the East of England (£14,739) and the South East (£14,266) have also seen some of the largest jumps in the average FTB house price since the market reopened for business.

Local Authority Level

When looking at the market in more detail, it becomes even more painful for FTBs in some areas of the market.

Islington has seen the largest increase in the sum paid by the average FTB of all areas of England. In May last year, the average FTB paid £594,884 to get on the ladder, however, this has since increased by a huge £72,803.

Haringey (£61,752) and Hammersmith and Fulham (£45,372) have also seen some of the largest increases, but this reduction in FTB affordability is confined to the capital.

In Rutland, the average FTB is now paying £42,124 more for a home, the fourth largest increase in England. Oxford has also seen a reduction in FTB affordability, with the average first-time buyer paying £40,440 more now when compared to May of last year.

Dacorum (£36,221), the Derbyshire Dales (£35,706), Redbridge (£35,053), Elmbridge (£34,769) and Ryedale (£34,110) also rank within the top 10.

An Uplift In Property Prices

Founder and Managing Director of BuildScan, Harry Yates, commented:

“Current market conditions remain very favourable for buyers, largely due to the ongoing low cost of borrowing and, of course, the saving made via the stamp duty holiday.

Unfortunately, the consequence of fuelling such demand is always going to be an uplift in property prices. As a result, the nation’s first-time buyers are now facing a considerably tougher challenge than they were less than a year ago, with house prices climbing by more than £70,000 in some areas.

While they should still be able to secure a favourable rate of interest on their mortgage, the deposit required to do so will have increased, as will the time required to repay the sum borrowed. So while current Government initiatives can be credited for revitalising the market, it’s important to also recognise the detrimental impact they’ve had for those already struggling to make it onto the property ladder.”

If you would like to see the below data points for your local area, please get in touch.

First-time buyers

Data sourced from the Land Registry House Price Index - FTB vs Existing Homeowners. May 2020 to Jan 2020 (latest data available)

First-time buyers

Data sourced from the Land Registry House Price Index - FTB vs Existing Homeowners. May 2020 to Jan 2020 (latest data available)

First-time buyers

Data sourced from the Land Registry House Price Index - FTB vs Existing Homeowners. May 2020 to Jan 2020 (latest data available)

  • Founder of HouseScan and BuildScan, Harry Yates, comes from a family background of construction and also holds a Construction Management degree.
  • Having done the basics of the job for a number of years, Harry launched HouseScan four years ago, then started introducing his bespoke technology in 2020 to fulfil the snagging process properly.
  • HouseScan is the new build snagging experts, using their knowledge, expertise and equipment to ensure your new home is as it was promised.
  • HouseScan has been employed by thousands of customers buying new build homes from a wide range of different housebuilders.
  • The HouseScan inspection and report is not only award-winning but more comprehensive than any of their competitors. HouseScan keeps up to date with all industry changes and regulations and they are also equipped with a range of equipment totalling over £4000 each.
  • BuildScan is a multi-platform app that allows users to manage defects, snag lists, punch lists, surveys and project workflow in full synchronisation and with unlimited collaboration. Teams or individual users can manage entire projects through BuildScan, assigning and controlling tasks, workflow and much more for effective construction defect management.
  • With BuildScan you can break your projects down into sites, plots and build stages for easy project management, log unlimited snags & defects straight into the BuildScan app, assign these defects as tasks to individuals & contractors within your team, manage and track progress throughout all stages of your project, create, manage & export snagging & inspection reports directly from the app
  • BuildScan launched on the 3rd November 2020.