First-time buyer market surges as numbers soar 19% in a year

The UK’s first-time buyer market saw a major resurgence in 2024 with 341,068 newcomers stepping onto the property ladder – a 19% increase compared to 2023, according to Halifax’s latest analysis.

For the first time on record first-time buyers made up a majority of all mortgage-financed property purchases, accounting for 54% of transactions.

However, affordability remains a significant hurdle, with the average first-time buyer home costing £311,034, an 8% jump from 2023.

Deposits have also risen sharply, averaging £61,090 – up £7,500 from the previous year.

OLDER FIRST-TIME BUYERS

The data also highlights the ongoing trend of delayed homeownership, with the average age of a first-time buyer now at 33 – the highest in two decades.

This figure has crept up by two years over the last 10 years and shows the growing financial challenge of securing a first home. In some areas, such as Slough and Sutton, first-time buyers are even older, averaging 38 years.

ACCESSIBILITY

Amanda Bryden, Head of Mortgages, Halifax — Amanda Bryden, Halifax

Mortgage accessibility has played a key role in the uptick in first-time buyers, with interest rates stabilising and lenders offering more tailored products.

Amanda Bryden, head of mortgages at Halifax, said: “The increase in first-time buyers reflects improving mortgage affordability and more certainty in the market. However, many still rely on dual incomes to make homeownership possible.”

JOINT BUYERS

Affordability constraints mean more buyers are pooling resources. Nearly two-thirds (62%) of first-time mortgage completions in 2024 were in joint names, reinforcing the financial necessity of combining incomes to meet deposit and repayment requirements.

NORTH SOUTH DIVIDE

Geographical trends reveal stark affordability contrasts. While Northern Ireland and Wales saw the highest decade-long growth in first-time buyer numbers (25% and 20% respectively), London remains an outlier with an 8% decline over the past 10 years.

County Durham stands out as the most accessible market for new buyers, where average property prices equate to just 3.6 times the local average salary. Conversely, London’s Hammersmith and Fulham remain the least affordable, with first-time buyer homes costing over 10 times the local average salary.

CONCERNING

Toby Leek, president of trade body NAEA Propertymark, said: “It’s positive to see that the number of first-time buyers coming to the housing market is on the up, however, from the tail end of 2024, this is likely, in part, due to the stamp duty rises commencing in England and Northern Ireland from April.

“What is concerning is the increasing average age and amount of money they need to fork out upfront to make their home move, as this is not feasible for many people.

“In order to get people across the country onto the housing ladder in the long term, we need to start to see more homes of all types and tenures being built to bring down house prices.”