The number of first-time buyers gaining a foot on the housing ladder has jumped by almost a fifth, fresh analysis by Halifax shows.
According to the bank, there were 341,068 first-time buyers last year, up 19% compared with 2023.
But despite the rebound, last year’s estimated total was not as big as the 369,870 first-time buyers recorded in 2022.
The data also revealed that the average deposit they are putting down is £61,090, to buy a home valued at £311,034 typically.
Halifax said the average first-time buyer is 33 years old, two years older than a decade ago when they were 31.
At a local level, the Shetland Islands have the youngest average first-time buyer at 27. At the other end of the scale, Slough in Berkshire and Sutton, south London, have the oldest first-time buyers at 38.
Halifax said first-time buyers made up more than half – 54% – of all home purchases made with a mortgage last year.
Nearly two-thirds (62%) of mortgage completions last year were in two or more names, with 38% starting on the property ladder on their own.
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 research was based on data from the Halifax’s own housing statistics database, figures from trade association UK Finance and official earnings data.
Bryden added: “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.”
Reflecting on the latest research, Matt Thompson, head of sales at London-based estate agent Chestertons, said: “In December 2024 as well as the beginning of this year, the property market saw particularly high demand from first-time buyers who were motivated to beat April’s stamp duty deadline.
“This spike in buyer activity led to the majority of properties exchange hands for the asking price, although some sellers, especially those in a rush to sell, agreed to enter price negotiations.”
