First-time buyers are increasingly favouring smaller properties as they adjust their expectations amid higher mortgage rates and look to get away from rapidly rising rents, according to a new report from Zoopla. The property website said that while three-bedroom homes remain the most sought-after for people taking their first step on the property ladder, “there is a clear shift in [first-time buyer] demand towards two-bed flats”.
The average asking price of a three-bedroom first-time buyer home is £230,000, while the average price tag for a two-bedroom property is around £210,000, Zoopla said. Its report states: “The rapid growth in house prices over the last three years means the household income to buy a three-bed [first-time buyer] home has increased by an average of £7,530 to a required household income of £55,900.
“The increase for two-bed homes is lower - up £4,900 to an income of £51,000.”
