Research by Stipendium, the platform that simplifies life’s complex events, has revealed that the average British first-time buyer (FTBs) is now almost £42,000 worse off when it comes to buying their first home thanks to the pandemic property market boom driving up the cost of homeownership.

Stipendium analysed the average price paid by first-time buyers and found that across Britain, they are now paying an average £236,783 – £41,764 more than they were in January 2020.

Largest uplifts in FTB house prices
The London Borough of Brent has seen the worst dent to first-time buyer affordability, with the average price paid up by more than double the national average. Those buying their first home in the borough and now paying £453,762 for the pleasure, a huge £89,753 increase compared to pre-pandemic market values.

South Hams in the South West has seen a £88,689 increase in the average price paid for a first home, with FTBs in Elmbridge now paying £76,108 more.

Bath and North East Somerset (£75,256) and Vale of Glamorgan (£72,303) have also seen some of the largest increases to the average price paid by a first-time buyer, as have Hertsmere (£71,403), Ceredigion (£69,878), Wealden (£69,535), Islington (£68,773) St Albans (£68,524) and Harborough (£68,298).

Smallest uplifts in FTB house prices
The City of Aberdeen has been the best area of Britain’s bricks and mortar market when it comes to the smallest increase in the price paid by the nation’s first-time buyers. Today, the average FTB is paying £121,971, just £1,287 more than they were before the pandemic property boom took hold.

Perhaps surprisingly, it’s a London borough that ranks second in this respect. The average price paid by a first-time buyer in Lambeth has climbed by just £6,570 since the start of the pandemic, with the London Borough of Tower Hamlets also making the top 10 (6th), with an increase of just £13,849.

Other areas to make the list include Inverclyde (£7,910), Copleand (£10,679), Rutland (£13,681), Hartlepool (£15,400), South Tyneside (£15,647), Allerdale (£15,880) and Gateshead (£16,998).

Christina Melling, CEO of Stipendium, commented:

“The property market’s pandemic performance has largely been hailed as a success story and this is certainly true for those who have seen the value of their home climb considerably. However, it’s also made it even harder for the nation’s first-time buyers to overcome what was already a huge financial hurdle when it comes to purchasing their first home.

In some areas, the cost of getting that first foot on the ladder has climbed by almost £90,000 since the start of the pandemic and, while that may seem like a lifetime ago, it really demonstrates how it’s a one step forward, two steps back endeavour for those struggling to climb the ladder for the first time.”