First-time buyer prices rocketed by 9.9% to stand at £169,259, while comparatively UK-wide prices rose by 7.3% to £219,315.
Paul Smith, chief executive of haart, said: “It is concerning to see the growth in the price of starter homes outstripping the rest of the market as it means it is becoming increasingly difficult for first-time buyers to get on to the property ladder.
“The 10% annual increase in first-time buyer house prices comes as a result of a shortage of homes, due to lack of building but also the absence of fluidity in the upper echelons of the market, as people who might otherwise be moving to their second or third home hold on to their current property for its value to increase further.
“However if the seller is upsizing, any increase in the value of their current home will be negated by the increase in the price they pay for their next, more expensive property. With good availability of fixed-term mortgages and a number of ‘known unknowns’ in the near future such as interest rate rises our advice for on-the-fence sellers is to do so now while the conditions are favourable.”
First-time buyers looking for a 20% deposit now need to find around £34,000%, outstripping the average salary by 30%.
