That’s according to Halifax, which said the number of first-time buyers rose to 341,068 last year, up 19% compared to 2023.
According to the UK’s largest lender’s analysis, first-time buyers made up over half (54%) of all home purchases made with a mortgage last year, the biggest majority on record.
First-time buyer facts
The average first-time buyer in 2024 was 33 years old, two years older than 10 years ago (31 years old) and the oldest in two decades. They put down an average deposit of £61,090 – £7,500 more than 2023) and typically paid £311,034 for their first home. This averages a 20% deposit.
Regional split
According to Halifax, 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.
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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.
Affordability constraints
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’, noted Halifax.
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.”
Toby Leek, president of NAEA Propertymark, added: “It’s positive to see that the number of first-time buyers coming to the housing market is on the up, however, from the tail end of 2024, this is likely, in part, due to the Stamp Duty rises commencing in England and Northern Ireland from April.
“What is concerning is the increasing average age and amount of money they need to fork out upfront to make their home move, as this is not feasible for many people.
“In order to get people across the country onto the housing ladder in the long term, we need to start to see more homes of all types and tenures being built to bring down house prices.”
