TSB has found that a third of its first-time buyer customers used a financial gift as part of their deposit, as activity from this group rose.
In the first half of the year, TSB said there was a 29% rise in first-time buyers going to the bank to purchase their first home. Total completions also went up by 27%.
In H1, first-time buyers accounted for 31% of all the lender’s mortgage completions.
Average first-time buyer ages by region
The average age of a new homeowner at TSB was static compared to last year, at 31 years old.
The youngest average first-time buyers were found in the North of England, at 29 years old, a 3% decline in the typical age recorded last year.
The largest drop in average ages for new homeowners was seen in Wales, with a 4.5% drop from 31 years old to 30. First-time buyers in East Anglia were also younger than in 2023, with a 2.9% fall to an average age of 30.
On average, first-time buyers from the South West were 2.2% older than they were a year ago, rising to 31. In London, this increased by 1.9% to 33, resulting in the oldest first-time buyers coming from the English capital.
This was followed by the South East at an average age of 32, and the South West of England at 31.
Meanwhile, in Scotland, there was a 1.7% rise to an average age of 31.
Where buyers purchased
The largest share of first-time buyer completions through TSB were for homes in the South East, accounting for 17% of activity. This was down from a fifth during the first six months of 2023.
This was followed by the North West at 13%, which was higher than a share of 11% of activity recorded last year.
The smallest share of completions was found in both Wales and East Anglia at 4% apiece, and unchanged from the year before.
Roland McCormack, mortgage distribution director at TSB, said: “We continue to see a significant increase in first-time buyer activity driven by a desire to own their own home and continued challenges in the rental market. A large number of first-time buyers rely on family support to enter the housing market, with one in three deposits being funded by families.
“Following the recent rate reduction, we’d encourage hopeful homeowners to keep saving up money for a deposit, monitor rates and consider getting a mortgage in principle, so as soon as you spot a property you like, you’re ready to make an offer.”
This week, TSB reduced rates across a number of mortgage products for residential and buy-to-let (BTL) borrowers.
This article was first published on Your Mortgage‘s sister site, Mortgage Solutions. Read: Gifted deposits used by a third of first-time buyers, TSB finds
