"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"
- Amanda Bryden, head of mortgages at Halifax
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 data from Halifax.
The figures show that first-time buyers made up over half (54%) of all home purchases made with a mortgage last year, the biggest majority on record.
Almost two thirds (62%) 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.
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.
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.
First-time buyer demographics
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.
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).
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 at 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.
“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."
