First-time buyers paid an average of £173,282 on their first ever home in May – a record high – according to data from estate agents Your Move and Reeds Rains.
This figure was 2.7 per cent more than the average £168,656 first-time buyers spent in April, and 15.8 per cent more than the average £149,645 spent in May 2015. Prices first-time buyers are prepared to spend have now increased over £23,000 over the past year.
The news comes after many buyers were putting off their property investment decisions. The number of property transactions in May was 11.9 per cent lower than the same time last year, according to HM Revenue and Customs, suggesting the market slowed ahead of the EU referendum.
Adrian Gill, director of estate agents Your Move and Reeds Rains, said: “May saw a crunch in the number of homeowners putting up a ‘for sale’ sign as many sellers held back to see the result of the EU referendum.
“But Brexit worries haven’t dented first-time buyers’ appetite to own their own home. Many still want to capitalise on the record low mortgage rates available at the moment which mean that monthly mortgage repayments are increasingly affordable.”
On the short-term picture for the property market, Gill said “the wide market wobbles may benefit first-timers, giving them the leverage to negotiate harder and get a good deal on purchase price.”