The market for first-time buyers has “collapsed” over the last 30 years, but is showing signs of recovery, according to a major piece of research by the parent company of Connells.

The Skipton Home Affordability Index “reveals the true scale of how access to first-time homeownership has transformed in England”.

This has been driven by a collapse in the number of under-25s buying their first home.”

It says the average age of a first-time buyer in England has risen from 29 to 34 since the mid-1990s.

“This has been driven by a collapse in the number of under-25s buying their first home, from almost one in four purchases in the mid-1990s to around one in fifteen today,” Skipton says.

Over half of recent first-time buyers (52%) now rely on two or more full-time incomes.

Stretching repayments

Around a third now also receive help from family, and over half (54%) of those with mortgages are stretching repayments across 30 years or more.

Deposits have also risen faster than wages, with the average first-time buyer now needing to save more than a full year of their household’s combined income.

But there are now modest signs that buying affordability may begin to improve, Skipton says, with roughly 125,000 more first-time buyers able to enter the market.

It’s encouraging to see early signs that affordability may be starting to improve.”

Stuart Haire, CEO at Skipton Group (pictured), says: “It [research] shows how the aspiration of homeownership has been pushed further out of reach for many younger adults, delaying independence and stability.

“However, it’s encouraging to see early signs that affordability may be starting to improve, and the focus has to be on realising those gains and ensuring more people can realistically share in them,” he says.

“This has become all the more important amid the current pressures on energy prices and potential further increases in living costs.”

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