First time buyers accounted for over £106bn worth of property sales in 2024 after a resurgence of activity in the sector after a fall in numbers in 2021.
Reporting on figures produced by the Financial Conduct Authority (FCA) the Office for National Statistics (ONS) said in 2023 the overall number of new first-time buyer (FTB) mortgages in the UK had fallen to its lowest levels since 2013; around 282,000. But the proportion of FTB mortgages in 2023 was much larger than 10 years previously, 38.4% against 28% in 2013.
In 2024 the value of the FTB market topped £106bn driven by both an increase in numbers and property prices. Analysis by GetAgent found that the number of FTBs climbed by 18.8% in 2024, reversing the two consecutive years of decline and topping 341,068 buyers getting their first foot on the ladder.
A recent property industry survey found that 75% believe the government should be doing more to help FTBs onto the property ladder with a wider range of mortgage products with lower deposits on the wish list. As was a commitment to building more affordable homes, and a Help to Buy scheme.
“First-time buyers form a significant proportion of market activity. However, while the 341,068 first-time buyers who climbed the ladder in 2024 represent a notable increase from the previous year, this figure remains some way off the 405,250 peak seen in 2021 and is only the sixth highest annual total over the last decade.”
said co-founder and CEO of GetAgent.co.uk, Colby Short, adding
“It’s not surprising that the industry is calling for more support to help first-time buyers climb the ladder, with initiatives designed to lower the initial cost of buying and the provision of more affordable housing stock.”
The increases have been put down to some improvements in mortgage affordability following Bank of England interest rate cuts. Market stability has no doubt played its part on building confidence, and demand spiked following the decision in the October budget not to extend SLDT reliefs for FTBs
And with market activity rising, the cost of FTB homes did too up by 7.9% to £311,034 in 2024. All of which has seen the FTB market in the UK climb to a value of £106.1bn say GetAgent; with the South East home to the most valuable first-time buyer market at £25.7bn, followed by London (£22.8bn) and the North West (£8.2bn).
