The price gap for those looking to move on from their first home is wider than ever, according to the latest figures from Rightmove.
The average three to four-bed home now costs 52% more than a typical first-time buyer home, putting increased pressure on those looking to move up the property ladder. In March, the average asking price for a 0-2 bedroom home, a typical first-time buyer property, was £226,955. The trade up to a middle-market, typical 3-4 bedroom second-stepper home would be a 52% jump to £345,857, the widest this gap has ever been.
In cash terms, this is a £118,902 step up from a typical first home to a second property – this gap has only been larger in cash terms on two occasions, in May and June 2025.
Regional variations mean that buyers in the South East have the biggest leap with the average first-time home of one or two-beds costing £286,748, rising to £460,781 for an average three to four-bed home – a jump of 61%.
Those in Yorkshire and the Humber have the smallest trade up from £182,029 to £251,885 – an increase of 38%, followed by Wales with an increase of 40%.
Matt Smith, Rightmove’s mortgage expert, said:
“Inevitably trading up means borrowing more. Home movers usually take advantage of having built equity since the purchase of their first home to fund a larger deposit, meaning they have access to cheaper rates.
“If equity is reduced, this means home movers are likely to need to look at alternative strategies, either through reducing their mortgage balance by overpaying, or boosting their deposit through savings. They can look at taking more incremental steps up the housing ladder, or scout out alternative, cheaper locations.”
The price gap is even wider for those starting out with a flat, with the price growth of flats much slower. According to Rightmove’s figures, the average price of a flat has only increased by 8% over the last ten years, compared to a 34% price increase for houses.
Colleen Babcock, Rightmove’s property expert, added:
“The race for space that began during the pandemic caused a major shift between houses and flats, and it’s a shift we’re still feeling today. Concerns around leaseholds and ground rents are also likely weighing on flat prices.”
The data chimes with the latest home affordability index from Skipton Group which found the average age of FTBs in 2025 was 24, up from 29 in the 1990’s. The research also found 52% of FTBs rely on two or more incomes, against 40% in the 90’s.
Skipton Group said the increase in average age of FTBs has been driven by a “near-collapse” of the under-25 FTB market since the 1990s. Back then, a quarter of all recent first-time buyers were under 25 (23%), but this has dropped significantly, to around one fifteenth (6%) and affordability pressures are evident in data which shows the majority of recent first-time buyers with a mortgage (54%) have a repayment term of 30+ years. an increase from 45% in the past decade.
