£71 billion first-time buyer rebound expected by 2025
Research into future lending to FTBs predicts 26% growth within two years, according to two organisations.
Lending to first-time buyers will reach £71 billion by 2025, 26% above estimated lending for 2023, latest research from Coventry Building Society reveals.
First-time buyers spend an average of £3,400 on upfront costs including moving and legal fees and an additional £4,900 on redecorating within a year of moving in.
But over a third (36%) of first-time buyers say they need more guidance on the additional costs of buying a house.
FTB lending growth
Research by Coventry For Intermediaries in partnership with the Centre for Economics and Business Research (CEBR) found mortgage lending to first-time buyers is predicted to reach £71 billion by 2025, which is 26% above estimated lending for the whole of 2023 (£56.5 billion). In 2024 this is set to increase by 16% to £65.3billion.
Analysis by CEBR also shows that these borrowers are expected to spend an average annual total of £3.1 billion on extra costs relating to home purchase by 2025.
Findings from the 1,000 first time buyers surveyed across the UK show that they are currently spending an average of £3,400 on additional upfront costs including moving and legal fees, as well as surveyor, valuation and mortgage fees. This is £300 higher than the costs cited in last year’s survey and above inflation.
CHALLENGING
Jonathan Stinton, Head of Intermediary Relationships at Coventry for intermediaries, says: “There’s no doubt that this year has been challenging for borrowers, with high mortgage rates, inflation and the ongoing cost of living crisis impacting people’s financial decisions.

“Despite this, new buyers still need and are keen to get onto the property ladder.”
And he adds: “First-time buyers have accounted for almost a third of all UK property transactions over the last five years and are a huge contributor to the UK economy.
“As the mortgage market and economy stabilises in the next couple of years, we will see even more first-time buyers ready to enter the market.
“They play a pivotal role in the economy, strengthening the mortgage market and overall UK economic landscape by contributing through the additional expenses associated with purchasing a home, such as, moving costs, legal fees and home improvements.”
