The average price tag on a first-time buyer home hit a record high of £224,963 in April after edging up by 0.2% month-on-month, according to a property website.
Rightmove, which released the findings, defined typical first-time buyer homes as those with a maximum of two bedrooms, including houses and flats. It said that agreed sales in the first-time buyer sector in March had been running around 4% higher than those seen four years earlier, in March 2019, while sales of homes higher up the housing chain were still lagging behind levels seen four years ago.
Rising rents may be encouraging some first-time buyers to make the jump onto the property ladder, despite higher mortgage rates generally having pushed up borrowing costs. There have been signs of some lenders cutting mortgage rates though in recent months.
READ MORE: Dr Michael Mosley shares top foods to improve sleep and weight loss
Tim Bannister, Rightmove's director of property science, said: "The first-time-buyer sector typically accounts for over a third of all sales, which are often the start of chains, so these positive sales agreed figures are good for the health of the whole market.
"The current multi-speed market is highlighted by sales of larger homes continuing to lag behind, with some sellers in the upper sectors likely needing to show a greater degree of pricing restraint to attract buyers in this much more price-sensitive market.
"More competition amongst lenders in the smaller deposit, higher loan-to-value ranges is positive news for those would-be first-time buyers who have saved up their deposit and can still afford to move.
"However, it remains a challenging environment to get onto the ladder, with new record average asking prices and higher borrowing costs to budget for than a year ago."
Looking at all property types across Britain, the average price of a home coming to market increased by 0.2% or £890 in April, which was lower than the typical uplift of 1.2% seen at this time of year.
The average price tag on a home generally in April was £366,247. Rightmove said the "unseasonal pricing restraint" is a sign that many new sellers are taking note of the economic headwinds and the transitioning of the housing market to a slower pace and more normal activity levels, last seen in the pre-pandemic market of 2019.
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
READ NEXT:
'Seek help immediately' warning to anyone with a garden
Melanie Sykes quits TV after comment from MasterChef's Gregg Wallace
Richard Madeley asks GMB fans' advice as Judy sleeps in spare room
All the DWP and other money changes you need to know about in May
Matalan fans say 'elegant' £22.50 dress is 'perfect for a wedding'
