New data from Rightmove shows the struggle first time buyers have right now – meaning many are likely to stay in the private rental sector.

It says that a typical monthly mortgage payment on a first-time buyer property is £350 more than five years ago.

The average monthly mortgage payment on a typical first-time buyer property (a two-bedroom or fewer home) is now £940 compared to £590 in 2020, despite improvements in the mortgage market from last year. However, the average payment is still £155 lower than the peak in 2023.

The analysis assumes a first-time buyer has been able to raise a 20% deposit and has opted to spread the cost of the mortgage over 30 years.

Average wage growth has outpaced the rise in average asking price for a typical first-time buyer property. Average earnings have grown by 30% in the last five years, versus a 17% increase in the price of a typical first-time buyer home.

This has slightly increased the borrowing power of first-time buyers, which is typically an average of 4.5 times a single or joint income from a mortgage lender.

However, affordability remains very stretched, which is why Rightmove has welcomed proposals from the mortgage regulator that they are considering responsible ways to enable first-time buyers to borrow more.

In London, an average first-time buyer type property is 6.8 times the national average wage of two people, now priced at £500,066.

This compares with the North East, where a typical first home is 1.8 times an average joint income at £132,854.

The analysis also highlights the particular challenge for any first-time buyers trying to purchase a home on their own.

In more than half of regions, a first-time buyer on a typical salary would not be able to afford a typical first home on their own, if they were only able to borrow 4.5 times their salary, even if they’d saved up a 10% deposit.

For those who may be considering lower-priced areas that they can move to, Kilmarnock has been named the cheapest area for a first-time buyer to get onto the property ladder.

The average asking price for a typical first-time buyer home in Kilmarnock, Ayrshire is £84,325. Greenock in Inverclyde is second on the list at £88,862, and Grimsby in Lincolnshire is third at £93,427.

Rightmove’s mortgage expert Matt Smith says: “Higher mortgage rates mean home-movers need to consider how much they can afford to pay each month on a monthly mortgage, even if they can meet the asking price of a home. Another measure of affordability which is restricting some first-time buyers from getting onto the ladder is how much they can borrow. It’s encouraging to see that the regulator is considering how they may be able to enable first-time buyers to borrow more in a responsible way, as we think this will help to unlock more opportunity, particularly for those with smaller deposits.”