New analysis suggests that first-time homebuyers are now paying around £400 more per month for their mortgage than they would have five years ago.
READ MORE: Supermarket almost as cheap as Aldi and Lidl for shopping essentials for third week running Tim Bannister, property expert at Rightmove, said: "As rates have increased over the last five years, the amount that a typical first-time buyer is paying each month on a mortgage has outstripped the pace of earning growth. Some first-time buyers are looking at extending their mortgage terms to 30 or 35 years to lower monthly payments, or looking at cheaper homes for sale so that they need to borrow less.
Research by Ipsos for Zoopla also determined that aiding first-time buyers onto the property ladder and controlling rent hikes in the private sector filled out the top five concerns. "Rent reforms are on the agenda for all parties but managing rental inflation is best achieved by growing supply through new home building as measures to control rents can reduce new investment.
Nathan Emerson, Propertymark's chief executive, stated: "Surging interest rates and inflation over the last few years have impacted the housing market with force.