Third of homes sold so far in 2024 go to first-time buyers

Around a third of all UK homes sold so far this year have been snapped up by first-time buyers – despite ongoing affordability challenges, research from Hamptons reveals.

Lower mortgage rates driven by falling inflation have proved a lifeline with first-time buyers making up 33% of all buyers in the first quarter of the year – up from 23% in 2023 as affordability conditions have eased.

SOUTH OF ENGLAND

The increase has been driven by buyers in the South of England with half (50%) of homes in London picked up by first-time buyers while Slough topped the list of 19 local authorities where buyers could get their foot on the ladder for the first time.

And if the pace of first-time buyer activity continues the UK is set to see 363,000 new homeowners this year – the highest number since 2009.

Wales and the North East were the only regions where the share of first-time buyer purchases fell since last year. However, these are already some of the most affordable areas to buy a home meaning improving affordability conditions would have little impact.

HIGH LOAN-TO-VALUE

Research from Hamptons also showed that over the last decade the share of homes bought by a first-time buyer in the UK doubled from 17% in 2014 as high loan-to-value lending and low-interest rates enabled more people to get a foothold.

However, this was coupled with a clampdown on buy-to-let, reducing demand from landlords – often at the expense of renters.

Aneisha Beveridge, Head of Research at Hamptons, says: “In a bid to escape the heated rental market, first-time buyers have dominated the sales market this year, making up a record third of all purchasers.”

But she adds: “This unprecedented move comes despite a limited package of government support measures.

“The market continues to be dominated by those who can afford to buy, rather than those who want to.”