First-time buyers were looking at homes that were 2.4% more expensive than a year earlier

First-time buyers in the UK have been looking at higher-value homes as mortgage affordability has improved, according to Zoopla.

The property website found that, as of July, first-time buyers were looking at homes that were 2.4% more expensive than a year earlier, at an average price of £229,000.

The findings, published on Thursday, were based on an analysis by Zoopla of the asking prices that were most popular among first-time buyers.

Its analysis showed that house prices overall had grown by 1.3% on average, and while this pace of growth was slower, the typical cost of a home across the wider market was still higher at £268,449.

Zoopla explained that mortgage affordability had improved over the past six months, giving all buyers using a mortgage 20% more borrowing power. It said that this was one reason behind a 30% rise in first-time buyer mortgages and also explained why they were now targeting higher value homes in more affordable regions.

First-time buyers account for around two-fifths (39%) of all house sales every year and half (49%) of all new mortgages for home purchases, according to Zoopla. Its data showed that 45% of first-time buyers were focused on buying three-bedroom houses, while interest in flats had dropped to 29%.

Zoopla said that first-time buyers typically to target homes that are 15% cheaper than the average price within the local area. The property website said that they tend to target house prices that are 21% below the average in London and the South East and 17% in Wales.

Richard Donnell, executive director at Zoopla, said that despite the recent boost to mortgage affordability more broadly, first-time buyers in London and southern England are still looking for cheaper homes than a year ago.

The ending of stamp duty reliefs since April has added to the cost of buying a home for first time buyers, he said. Large deposits and mortgage regulations mean a high household income is needed to buy in southern England where affordability remains a challenge and this is acting as a drag on house price growth across southern England.