The pandemic property boom might be over but the average first-time buyer (FTB) in Britain has seen the cost of a home increase by £25 per day since interest rates first started to climb, according to analysis by Wayhome. 

The research found that the average FTB house price has increased by 5.8% since December 2021. This means that the high financial hurdle of getting that first foot on the ladder has risen by £13,018 – so those that have chosen to sit tight and wait to buy have seen the average cost of a home increase by £25 per day. 

This also means that the average FTB deposit requirement has increased by £1,953 to £35,502, while at the same time, the average mortgage rate has risen from an estimated 1.72% to 4.22%, 

As a result, those looking to purchase today will be paying £306 more per month when repaying a mortgage, with the average monthly repayment now standing at £1,086 per month. 

Regionally, those in the South East have seen the largest increase in the cost of a first home since interest rates started to climb. The average FTB house price in the region has risen by £40 per day since December 2021, with the South West seeing an increase of £34 per day.

However, at local authority level, the London Borough of Tower Hamlets has seen the biggest increase, with the average FTB seeing the cost of a first home increase by £151 per day since interest rates started to climb. This is followed by Hackney, with a £109 per day increase.

Such increases aren’t restricted to the London market, however, with Sevenoaks seeing the next largest increase at £96 per day, followed by Cambridge (£94 per day), Melton (£88 per day), Wokingham (£88 per day), Canterbury (£87 per day), Hounslow (£80 per day), and Greenwich (£80 per day).

Nigel Purves, co-founder and CEO of Wayhome, said the research highlights that buyers are “far better off taking the leap when they can, rather than enduring the cost of hesitation by sitting tight while house prices climb ever higher”.