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First-time buyer asking prices up 4% in February

Jake Carter

March 2, 2021

residential first homes

First-time buyer (FTB) asking prices have risen by 4% year-on-year across Great Britain, according to data collected by Rightmove.

As a result, the average asking price has risen from £193,768 in February 2020 to £200,692 last month.

On a regional basis, FTB asking prices rose by the greatest margin in the North West, up 9% from £135,742 to £147,693.

In contrast, London was the only region which saw average FTB asking prices fall year-on-year, declining by 2%, from £486,383 to £478,068.

Looking to the possibility of an extension to the stamp duty holiday, Rightmove estimates that 100,000 buyers who agreed a purchase last year are set to lose out, if the deadline stays as 31 March.

If the deadline is extended until June, Rightmove believes that an additional 300,000 property transactions in England could get through.

A mortgage guarantee scheme is also expected to be revealed within the Budget, with 86% of properties up for sale being eligible for the scheme according to Rightmove.

Tim Bannister, property expert at Rightmove, said: “We estimate that around 100,000 sales will miss the current March deadline, and so if the holiday is extended to the end of June it would give these the chance to complete in time, plus a number of other sales could now make it through that were only agreed at the start of this year.

“If it is announced this week we’re likely to see a rush of new buyers also trying to make use of the savings, but it’s worth remembering that the huge logjam will mean a new sale being agreed is still likely to take over four months on average to complete, so really an extension for a few months would be an indication that it’s to help those already trying to get their purchases through.”


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