The number of first-time buyers fell by 11% to 362,461 in 2022 compared to 2021, according to Halifax.

The lender said that first-time buyer numbers fell across all nations and regions last year. The greatest falls were in the South East, South West, Wales and Northern Ireland, all dropping by 12%.

The East Midlands saw the smallest fall, relative to the rest of the UK, with the number of first-time buyers down 7%.

Still historically high

Despite the drop, first-time buyer levels remained higher than pre-pandemic, with last year the third highest year recorded (following 2006 and 2021’s record spike).

First-time buyers accounted for over half (52%) of all home purchase loans. However, the UK’s largest lender found that over six in 10 (63%) had to buy jointly with one or more other people to get onto the housing ladder.

Rising prices

In 2022, the average cost of a home for a first-time buyer was up 13% (to £302,010), with average deposits now 21% of the purchase price. In cash terms, this means an average £62,470 deposit is being raised by those buying their first home – up 8% on 2021.

Kim Kinnaird, mortgages director at Halifax said: “Over 362,000 people got on the property ladder in 2022, with first-time buyers now accounting for over half of all home loans. Today, getting your own place for the first time will likely mean paying over £300,000 for that new home, and putting down, on average, a £62,000 deposit.”