"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"
- Amanda Bryden - Halifax
The number of first-time buyers stepping onto the property ladder rose to 341,068 last year, up 19% compared to 2023 and making up 54% of all home purchases made with a mortgage last year, the biggest majority on record, according to the latest data released by Halifax.
The average first-time buyer in 2024 put down an average deposit of £61,090 and typically paid £311,034 for their first home. Many buying their first home are doing so ‘coupled up’ – 62% of mortgage completions last year were in two or more names. However, 38% of buyers started on the property ladder on their own, up from 2023.
All regions saw an increase in the number of first-time buyers
Across the UK, all regions and nations saw growth in the number of buyers getting on the housing ladder. East Anglia and the South West experienced the largest increases, with +22% more first-time buyers than in 2023.
When looking over the last decade, almost all regions saw an increase in the number of first-time buyers, with Northern Ireland (+25%) and Wales (+20%) leading the way. London was the only exception, with 8% fewer first-time buyers than 10 years ago.
First-time buyers getting older
The average age of a first-time buyer has increased to 33 years old in 2024, (from 32 years old in 2023), the oldest in two decades. The average person buying a first home is now 31 years or older in all UK regions and nations.
At a local level, the Shetlands Islands in Scotland have the youngest average first-time buyer, at 27 years of age. At the other end of the scale, Slough in Berkshire and Sutton, South London have the oldest first-time buyers at 38 years old – five years older than the UK average.
Affordability
Average property values for first-time buyers are now around 6.6 times the average UK salary (£46,970), so it’s no surprise that most new buyers are purchasing in joint names rather than by themselves.
The most affordable place to buy a first home in the country is in the North of England, with County Durham topping the list. Using the comparison of the average earnings in County Durham in the North East (£39,245) to the average first-time buyer property price in the area (£142,248) those getting started on the property ladder need to borrow roughly 3.6 times the average salary.
The least affordable areas in the country are in London and the South East. First-time buyers in Hammersmith and Fulham face average house prices (£622,115) of more than 10 times the average salary (£64,646).
"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 onto the ladder," explained Amanda Bryden, Head of Mortgages at Halifax.
“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.”
She added, “Looking ahead we expect modest house price growth in 2025, but upcoming Stamp Duty threshold reductions won’t make things any easier in the short term for first-time buyers. However, as last year's figures show, there are ways to make your money go further, with affordable areas in the North of the country, such as County Durham or Burnley, offering more value,"
