First-time buyers are facing house prices that have climbed faster than the wider market in eight areas, new research reveals.

The findings from part-own-part-rent provider Wayhome show how difficult it has become in some places for people to get onto the housing ladder.

In East Suffolk, the average cost of a first home has increased by 36.8% since 2017, 1.9% more than the rate of growth seen across the market.

And in Merthyr Tydfil, South Wales, FTB house prices have climbed 1.2% more than the price paid by existing homeowners.

In Bolsover (0.7%), South Holland (0.4%), St Helens (0.3%), Hyndburn (0.2%), North East Lincolnshire (0.1%) and the City of London (0.1%), the average price increase of a first home has also outperformed the wider market.

Record highs

Nigel Purves, co-founder and CEO of Wayhome, says: “With house prices pushed to record highs during the pandemic property market boom, first-time buyers have arguably never had it tougher when it comes to securing that first foot on the ladder.

First-time buyers have arguably never had it tougher”

“This is putting a further squeeze on affordability, and so it’s no wonder that many first-time buyers are becoming increasingly reliant on additional help, whether that be government buying schemes such as Help to Buy or other avenues such as shared ownership.”

In Yorkshire and the Humber first-time buyers face the toughest struggle when it comes to relative affordability versus the wider market.

Although the average first-time buyer house prices across the region is the lowest in Britain at £181,628, it’s also home to the smallest gap between the price of a first home and the price paid across the market (24%).

Read more about FTB market.