First-time buyers up by a fifth, major bank says

Business

The number of first-time buyers rose by almost a fifth last year, according to data from Halifax.

The bank said 2024 saw 341,068 people buy their first properties, up by 19% from 2023.

While the figures are a rebound from 2023’s 22% drop, they are not as high as they were in 2022.

That year saw 367,870 first-time buyers recorded.

Amanda Bryden, head of mortgages at the bank, said the rise “likely reflects an improvement in mortgage affordability as interest rates eased and stabilised, providing more certainty for those stepping on to the ladder”.

Earlier this month, the Bank of England cut interest rates to 4.5% – a drop of another quarter percentage point for the third period in a row.

Halifax said that on average, first-time buyers are 33 years old – two years older than they were a decade ago – and that the average deposit paid was £61,090 for a home typically valued at £311,034.

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The bank also said that people stepping on to the property ladder accounted for more than half of all home purchases made with a mortgage last year, at 54%.

Ms Bryden added that “many are still teaming up to make the numbers work, with most buying homes jointly”, which “makes sense” given the average deposit and house price.

She said these prices “can be a stretch for those with a single income”, and that: “It’s not surprising the average first-time buyer is now 33 years old, the oldest in the last two decades.”

However, while Halifax expects “modest house price growth” this year, Ms Bryden said: “Upcoming stamp duty threshold reductions won’t make things any easier in the short term for first-time buyers.”

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Chancellor Rachel Reeves announced in her budget last year that the “nil rate” stamp duty band for first-time buyers will reduce from £425,000 to £300,000 from 1 April.

Halifax’s research was based on data from its own housing statistics database, as well as figures from trade association UK Finance and official earnings data.

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