A new report from property website Rightmove confirms that affordability remains a significant challenge for first-time buyers, with average mortgage repayments up by £359 in five years.
Potential buyers have also been hit with steep rises in rent, making it difficult for those not yet on the property ladder to save for a deposit.
The report, which examines the post-Covid property landscape, reveals that average rents have increased by 42% over the last five years, outpacing wage growth and presenting a challenge for renters trying to set money aside.
Over the same period, the average five-year fixed mortgage rate has jumped from 2.15% to 4.73%. For first-time buyers who are able to save a 20% deposit, this results in an average monthly repayment of £949 – an increase of £359.
The borrowing power of potential buyers has improved, however, with a 30% rise in average wages offsetting the 17% rise in the average asking price of a typical first home. First-time buyers can currently expect to pay around £227,965, up from £195,463 in 2020.
Space remains one of the most sought after attributes of a home, with words like ‘Garden’ ‘Annexe’ and ‘Rural’ featuring in the top three search keywords. And, says Rightmove, semi-detached and detached houses have risen by more in price over the last five years compared to flats, suggesting there is still a premium for having more space.
| Type of home | Average asking price | Five-year asking price increase |
| Overall | £371,870 | 19% |
| Bungalow | £342,518 | 21% |
| Flat | £304,526 | 7% |
| Terraced House | £303,622 | 20% |
| Semi-Detached House | £326,918 | 23% |
| Detached House | £545,869 | 21% |
The portal also revealed the post-pandemic exodus from the cities to country living is beginning to reverse. Demand is down, evidenced by the cooling of pricing in previously popular areas such as coastal towns, where buyers sought space in the wake of the national lockdowns.
In 2021, the average asking price of homes near the sea increased 4.5% compared with the previous year; double the average 2.7 annual growth seen across the country in the same period. In 2025, asking prices in coastal areas have risen by 1%, similar to the rest of the country. The speed at which homes in coastal areas are finding buyers has also slowed, from an average 52 days in 2021 to 73 days in 2025. While Cornwall temporarily took the mantle of the most searched for location on Rightmove in 2021, London is now once again the most searched for location, with 58% of home movers preferring the capital.
Commenting on the research, 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.”
