First-time buyer market rebounds as a fifth more stepped on the ladder last year

The number of first-time buyers stepping onto the property ladder rose to 341,068 last year, up 19% compared to 2023.

According to the latest analysis from Halifax, first-time buyers made up over half (54%) of all home purchases made with a mortgage last year, the biggest majority on record.

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. They 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’ – almost two thirds (62%1) of mortgage completions last year were in two or more names. However, 38% of buyers started on the property ladder on their own, a 1pp increase from 2023.

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.”

House prices and deposits

In 2024, the average cost of a first-time buyer home was £311,034 (up +8% vs 2023), with deposits averaging 20% of the purchase price. This means a typical new buyer is putting down a deposit of £61,090, around £7,500 (+14%) more than in 2023.

All regions increased 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).

Amanda Bryden, Head of Mortgages, Halifax said: “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.

“While the journey to homeownership can look daunting, there are lots of tools and schemes available to help, such as mortgage products tailored for those buying a first home, or Shared Ownership can also be a route to stepping on the property ladder at lower cost.

“The best first step is to speak to a mortgage adviser or broker. By understanding what you need to save and what's affordable, you can turn the dream of owning a home into reality."

Case study

Jemma Sparrow, 40, from Chipping Sodbury, South Gloucestershire made it on to the property ladder for the first time last year.

“After renting for years, it was always our dream to own a home to call our own. However, it’s been challenging, especially with my husband being self-employed. Balancing rent, raising our children and being able to put enough money aside towards a deposit was tough.

“We didn’t want to miss out on making memories, like much-needed holidays with our sons, as they grow up so fast. But we were always looking at ways to save extra money. Finally, last November, just before I turned 40, we were able to buy our forever home.

“I still cannot believe it’s actually ours and so much bigger than the previous houses we rented. My favourite part is being able to decorate it and change things to exactly how we want. “We love entertaining our family and friends and filling our home with happy memories. It took a while, but we kept going and our hard work has paid off now we have a place to call our own.”