If you’re considering purchasing your first home, you may be curious about the average asking price and the current state of the housing market. In comparison to the pre-pandemic property market of 2019, we have observed a significant increase in the number of sales agreed for first-time buyer homes. This trend could be attributed to the competitive rental market we are currently experiencing, with prospective buyers who can gather a deposit now taking steps towards homeownership.
Currently, the average asking price for a first-time buyer home, specifically those with two bedrooms or fewer, hovers just below £225,000. As for mortgage rates, it’s important to note that lenders regularly modify the rates of their mortgage products. You can keep track of the current average UK mortgage rates and compare them to the previous week’s rates. Moreover, you can assess rates across various loan-to-value (LTV) percentages and determine the average monthly mortgage repayments depending on the type of property you intend to purchase.
Unsure of where to begin your home search as a first-time buyer? Our draw a search tool can assist you in specifying your desired area. By using this tool, you’ll gain access to all the homes currently available for sale within your chosen price range in that particular location. Additionally, you can explore the selling prices of other homes in the area.
If you’d like to learn more about applying for a mortgage, we recommend consulting our 7 steps to getting mortgage ready. When you find the home you desire, you can expedite the viewing process by applying for a Mortgage in Principle. This quick and free application won’t have any impact on your credit rating.
Lastly, it’s worth noting that first-time buyers are exempt from paying stamp duty on homes costing up to £425,000. Furthermore, the government has raised the stamp duty threshold for all home-buyers to £250,000, a change that is expected to remain in effect until March 2025.
