First-time buyer age in the UK has increased but activity is increasing
The number of first-time buyers in the UK saw a significant increase in 2024, with 341,068 people stepping onto the property ladder. This marks a 19% rise compared to 2023, according to the latest research from Halifax. First-time buyers made up 54% of all home purchases completed with a mortgage last year, the highest proportion on record. Despite this increase, the average age first-time buyer age in the UK has now risen to 33, two years older than a decade ago. Obviously this increase shows the growing challenges faced by those trying to get on the property ladder, including rising house prices and the need for larger deposits.
First-Time Buyer Age In The UK Is Getting Higher But Activity Is Still Increasing!
The research carried out by Halifax found that in 2024, first-time buyers paid an average of £311,034 for their first home, an 8% increase from the previous year. This may seem high, but this encompasses places like London where first-time buyer properties can easily start at over £400,000 as well as areas where properties are cheaper.
The average deposit also rose, reaching £61,090, which represents around 20% of the total property value, leaving an 80% mortgage or 80% loan-to-value. Many first-time buyers are choosing to purchase properties with a partner or family member with schemes like joint borrower sole proprietor to increase affordability. In 2024, 62% of first-time buyer mortgage completions were in joint names. However, 38% of buyers took the step alone, a 1% increase from the previous year, an incredibly high and pretty surprising figure, showing that solo homeownership is still a goal for many despite the financial hurdles that 2024 held.
Increased Cost Of Living Means It Is Harder For First-Time Buyers To Purchase
The increasing age of first-time buyers reflects the growing financial burden of purchasing a property in the UK. With house prices rising and mortgage rates fluctuating, many potential buyers are taking longer to save for a deposit and secure a mortgage. For those that are renting, it is becoming near impossible to save enough deposit per month as rent is also going up more frequently.
Louis Mason, Marketing and Communications Director at London-based mortgage brokerage Oportfolio Mortgages, commented on Halifax’s findings: “The increase in first-time buyers is encouraging, but the rising average age underscores the financial hurdles many face. If things continue the way they are, we could very well see people not owning their own property until they are well into their 40’s, if ever! If you find yourself in the fortunate position to be able to purchase your first home, it’s crucial for you to get tailored mortgage advice.”
Speak To A First-Time Buyer Mortgage Advisor
For those looking to buy their first home in 2025, getting the right mortgage advice is essential. Oportfolio Mortgages offers expert guidance to help first-time buyers purchase their first home. If you’re planning to get on the property ladder this year, contact our friendly and knowledgeable team today to see how we can help.
