‘Let’s get it together’ say FTBs as they scale affordability mountain

First-time buyers (FTBs) are joining up to step onto the housing ladder with almost two thirds of mortgage completions in joint names (with two or more people), latest analysis from Halifax reveals.

According to the lenders’ analysis FTBs are now 32 years old on average and 30 years or older across all nations and regions and put down an average deposit of £53,414 – some £21,000 more than 10 years ago.

AVERAGE SALARY

And although the average salary is 30% higher than it was a decade ago at £43,257 getting together a deposit large enough to put down on a first home means raising more than a year’s pay.

FTBs made up the majority (53%) of all home loans last year although the overall number of them fell by -21% to 293,339 compared to 2022 and the average house price for buyers entering the housing market in 2023 was £288,136, -5% lower than the previous year.

Despite this, house prices for first-time buyers remain over £132,000 more expensive than 10 years ago (+86%).

Kim Kinnaird, Director, Halifax Mortgages, says: “To get a foot on the ladder most people are now buying for the first time in joint names.

“There are a number of schemes available to support first-time buyers, like the mortgage guarantee scheme, which allows us to offer up to 95% mortgages to first-time buyers and has been extended until June 2025.

“Alternatively, the First Homes scheme offers discounts on new-build homes to first-time buyers, while shared ownership options allow new buyers to purchase some of the property and rent the rest.”

TURBULENCE

Nathan Emerson, Chief Executive at Propertymark, says: “It is encouraging to see that the economic turbulence of the last three years has not stopped first-time buyers from purchasing over half of all home loans.

“However, housing still needs to be more affordable for all and for that to happen, the UK Government must place realistic and focused measures in place to meet its target of building 300,000 new homes a year in England.”

And Tom Bill, Head of UK Residential Research at Knight Frank, adds: “First-time buyers have been hit especially hard by rising mortgage rates. The sub-4% deals we increasingly hear about are typically for those with equity levels of 40% or more.

“The government is likely to offer first-time buyers more financial support ahead of the election this year given that housing is a key political battleground and based on the belief that homeowners are more likely to vote Conservative.”