The majority of first-time buyers are aged between 25 and 34 and use their own savings to cover the deposit, according to data in the government’s latest English Housing Survey (EHS).
In 2023-24, 60% of first-time buyers were aged between 25 and 34, with 21% between 35 and 44, 10% between 45 and 64, 7% aged 16 to 24, and just 2% aged 65 or over. The survey also reveals that three quarters of young private renters (aged 16 to 24) expect to buy their own home, but as few as 3% of renters aged 65 or over believe they’ll get on the property ladder.
Overall, the proportion of private renters who expect to buy their own home has decreased over the last 10 years, from 61% to 57%.
Almost half of first-time buyer households (48%) were couples with no dependent children, 26% were one person households and 21% were couples with dependent children. Multi-person households and lone parents with dependent children made up the smallest proportion of first time buyer households, at 2% and 3% respectively.
The majority of first-time buyers of all ages used savings to put down the deposit on their home, with 86% using money they’d set aside. This rose to 91% among younger buyers (25-34) but fell to 59% for those aged 45-64. With private renters spending the highest proportion of their income on rent (34%, compared to 19% for mortgagors), these figures are indicative of older, longer-term renters unable to save a lump sum because a higher proportion of their income goes on rent payments.
Around a third of first time buyers (31%) received gifts or loans from friends and family to pay their deposit, with just 9% using inherited money. Around 12% said they used other sources to finance the downpayment.
Only 17% of single female first-time buyers said they used a gift or loan as a deposit, compared to 42% of single male buyers. Single female households were also less likely than single men to expect to ever own their own home, at 22% and 32% respectively.
Optimism about home ownership was significantly more widespread in young private renters than those in older age groups. Around three in four private and social renters aged 16 to 24 (73% and 69%) expected to buy a property, compared to 10% and 3% respectively of private and social renters aged 65 and over.
The EHS brings together evidence on the impact of the housing crisis on different households and demographics across England. The report looks at the extent to which rises in the cost of living are exacerbating housing crisis conditions and disproportionately affecting certain households and demographics more than others.
