A new report from property website Rightmove reveals that affordability remains a key challenge for first-time buyers, with average monthly mortgage repayments increasing by £359 over the past five years.

Would-be homeowners are also facing sharp rises in rental costs, making it increasingly difficult to save for a deposit while renting.

The report, which explores the post-Covid property market, shows that average rents have surged by 42% in the last five years—far outpacing wage growth and making it harder for renters to put money aside.

Over the same period, the average five-year fixed mortgage rate has risen from 2.15% to 4.73%. For first-time buyers able to save a 20% deposit, this results in an average monthly repayment of £949—an increase of £359.

However, there has been some improvement in borrowing power. A 30% rise in average wages has helped offset the 17% increase in the average asking price for a typical first home. First-time buyers can now expect to pay around £227,965, up from £195,463 in 2020.

Space remains a top priority for buyers, with keywords such as ‘Garden’, ‘Annexe’ and ‘Rural’ featuring among the most searched terms. Rightmove notes that semi-detached and detached homes have seen greater price growth over the past five years than flats, suggesting continued demand for more spacious living.

The post-pandemic trend of moving from cities to the countryside appears to be reversing. Demand has fallen in previously sought-after areas like coastal towns, reflected in slower price growth and longer selling times.

In 2021, average asking prices for homes near the coast rose by 4.5% year-on-year—double the national average of 2.7%. By 2025, however, coastal property prices have increased by just 1%, in line with the national trend. Properties in these areas are also taking longer to sell, with the average time rising from 52 days in 2021 to 73 days in 2025. While Cornwall was the most searched-for location on Rightmove in 2021, London has now regained the top spot, with 58% of home movers favouring the capital.

Commenting on the findings, Steve Pimblett, Rightmove’s Chief Data Officer, said:

“Five years on from the pandemic, many short-term trends brought about by the unique circumstances of lockdown have reversed. Coastal homes are taking longer to find buyers and price growth has stabilised as more supply has come onto the market, some likely from movers heading back to the city. At the same time, fewer people are looking to escape cities, as life has returned to normal, and the debate continues about remote versus office working.”

Source: Juliet Shaw, Today's Conveyancer