The number of people who bought their first home increased by 19% in 2024 against 2023 with 341,068 first time buyers (FTBs) accounting for over half (54%) of all property purchases with a mortgage; the highest proportion of FTBs against other buyers on record according to the Halifax.
A sizeable proportion of FTBs sought their mortgage in the final quarter of 2023 with Santander reporting a 130% increase in mortgage applications in Q4 2024 compared to Q4 2023 as movers rushed to take advantage of lower SDLT nil rate bands before they increase from 1st April 2025.
Halifax’s research found the average cost of a first-time buyer home was £311,034 in 2024, an increase of 8% against 2023. A combination of average age and purchasing as a couple contributed to the average deposits being 20% of the property value; a typical new buyer is putting down a deposit of £61,090, around £7,500 (+14%) more than in 2023. The average first-time buyer in 2024 was 33 years old, two years older than ten years ago (31 years old) and the oldest in two decades. 62% of mortgage completions last were in two or more names.
And in an effort to get on the ladder, Santander’s research found FTBs are compromising on location with two-thirds (67%) of those who bought their first home in the last two years had never seen their new neighbourhood before buying, compared to just over half (51%) of those who bought more than five years ago. According to the research, first-time buyers moving to new neighbourhoods in the last two years saved an average of £29,000 compared to buying a house in the area they lived in before.
Amanda Bryden, Head of Mortgages, Halifax said:
“Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023. This likely reflects an improvement in mortgage affordability, as interest rates eased and stabilised, providing more certainty for those stepping on to the ladder.
“Many are still teaming up to make the numbers work, with most buying homes jointly. This makes sense given the average deposit of £61,090 and an average starter home price of £311,034, which can be a stretch for those with a single income. It’s not surprising the average first-time buyer is now 33 years old, the oldest in the last two decades.
“Despite the challenges of saving for a deposit and rising house prices – up 8% in 2024 – it’s encouraging that first-time buyers still account for more than half of all new mortgages, the biggest majority ever recorded.”
