Huge rise in house prices for Island's first time buyers

The average house price on the Isle of Wight for first-time buyers has risen by a quarter over the past five years, new figures show.

It comes as property website Rightmove said the typical mortgage payment for first-time buyers has increased by £400 a month and called on the next government to support those buying their first home.

The latest figures from the Land Registry's house price index show first-time buyers on the Isle of Wight were paying an average of £222,000 for a house in April.

It was up 25 per cent from an average of £177,400 five years earlier.

Overall house prices on the Isle of Wight have jumped 26 per cent over five years, reaching £275,000 in April 2024.

Tim Bannister, Rightmove’s property expert, said reduced mortgage rates would help first-time buyers in the short term, "more so than election housing promises".

It comes as the property website said the average mortgage payment for a typical first-time buyer in Great Britain has risen by 61 per cent over the past five years – from £667 a month in 2019 to £1,075 this year.

Mr Bannister added: "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."

He said: "We hope that the next government can support first-time buyers with well thought out policies, which address the difficulties of saving up a large enough deposit and being able to borrow enough from a lender."

Propertymark, a membership organisation for estate agents, said surging interest rates and inflation have impacted the housing market "with force".

The most recent Land Registry figures also show a significant drop in housing sales compared to five years prior.

On the Isle of Wight, there were 87 sales in February this year – down from 199 five years earlier.