"Many still want to capitalise on the record low mortgage rates available at the moment which mean that monthly mortgage repayments are increasingly affordable."
May saw first-time buyers pay an average of £173,282, up 2.7% from £168,656 in April and 15.8% more than the average of £149,645 seen in May 2015.
First-time buyer house prices have now shot up more than £23,000 in the last twelve months.
Across the market as a whole, house prices dipped in May in anticipation of the EU referendum on 23rd June. But the bottom of the market has defied this trend fuelled by unwavering FTB demand.
Completed first-time buyer sales totalled 24,900 in May, just 0.8% lower than the 25,100 seen in April, even as first-time buyers were held back by a lack of homes on the market ahead of the referendum.
FTB numbers are 13.2% higher than the 22,000 seen in February and 5.1% higher than a year ago.
Additionally, the average mortgage rate for first-time buyers has slipped further in May to 3.08% – a new record low – following a fall of 0.37 percentage points over the past year.
Despite the climbing overall cost of a home, these cheaper rates mean mortgage repayments have not increased significantly as a proportion of first time buyer’s income. As of May, mortgage repayments accounted for 21.1% of income, just 1.7 percentage points more than a year ago.
Adrian Gill, director of estate agents Your Move and Reeds Rains, commented: “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. The Brexit result won’t change the fact that huge numbers of aspiring first-timers want to buy a first home, and lots won’t want to wait out the 2 years until the renegotiations over the EU have been completed.
"In the short-term, the wider market wobbles may benefit first-timers, giving them the leverage to negotiate harder and get a good deal on purchase price. Canny first-timers will use any Brexit-lull as a chance to snap up a good deal and get on the housing ladder."
