The number of first-time buyers rose by almost a fifth last year, according to data from Halifax. The bank reported that in 2024, 341,068 individuals purchased their first properties, marking a 19% increase from the previous year. While this surge is a significant rebound from the 22% decline seen in 2023, it falls short of the numbers recorded in 2022, which saw 367,870 first-time buyers entering the market. Amanda Bryden, the head of mortgages at the bank, attributed this rise to an improvement in mortgage affordability as interest rates eased and stabilized, providing more certainty for those looking to step onto the property ladder.
Earlier this month, the Bank of England made a move to cut interest rates to 4.5%, marking a quarter percentage point decrease for the third consecutive period. On average, first-time buyers are now 33 years old, which is two years older than a decade ago. The average deposit paid for a home, typically valued at £311,034, is £61,090. Additionally, more than half of all home purchases made with a mortgage last year were by individuals stepping onto the property ladder, accounting for 54% of transactions.
Many first-time buyers are still pooling resources to make homeownership more feasible, often purchasing homes jointly to meet the demands of the average deposit and house prices. Ms. Bryden noted that these prices can be a financial stretch for those with a single income, leading to the average age of first-time buyers increasing to 33 years, the oldest in the last two decades. Despite Halifax’s expectation of modest house price growth this year, Ms. Bryden cautioned that upcoming reductions in stamp duty thresholds will present challenges for first-time buyers in the short term.
In a related development, Chancellor Rachel Reeves announced in her budget last year that the «nil rate» stamp duty band for first-time buyers will decrease from £425,000 to £300,000 starting from 1 April. Halifax’s research draws on data from its housing statistics database, alongside figures from trade association UK Finance and official earnings data.
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