The chasm between the price of starter homes and larger properties in Great Britain has reached its highest level ever, according to Rightmove data. In March, the average asking price for a two-bedroom or smaller home stood at £226,955, while a typical three-or-four-bedroom 'second-stepper' home commanded £345,857, a 52 per cent gap that shattered records dating back to 2001. This widening divide reflects a market where London buyers face the steepest challenge, with a 61 per cent premium for more space, compared to just 38 per cent in Yorkshire and the Humber.

The shift began during the pandemic, with demand for larger homes surging while flats, crucial for first-time buyers, saw slower price growth. Concerns over leaseholds and high service charges further weighed on flat values, which underperformed the wider market since 2019. Mortgage rate hikes driven by geopolitical tensions are now making the leap between property sizes even harder, as noted by Quilter's mortgage expert Karen Noye.