Surge in First-Time Buyers as Mortgage Affordability Improves.

The number of first-time buyers entering the property market jumped 19% in 2024, compared to the previous year, according to the latest figures from Halifax. The mortgage lender reports that the average deposit for a first home now stands at £61,090, while the typical purchase price for first-time buyers has reached £311,034. Additionally, the average age of first-time homeowners has increased to 33, reflecting a two-year rise over the past decade. Many buyers are choosing to purchase homes with a partner or co-buyer, with 62% of mortgage completions involving more than one applicant.

Market Trends and Mortgage Affordability

Despite an 8% rise in house prices in 2024, first-time buyers now account for more than half of all new mortgages, the highest proportion ever recorded. While the recent surge in first-time buyers is partly linked to the upcoming stamp duty deadline, Halifax’s Head of Mortgages, Amanda Bryden, highlights additional contributing factors. "More stable and lower interest rates have improved mortgage affordability, giving more people the opportunity to buy their first home," Bryden explains. "Many buyers are teaming up to make homeownership financially viable, which is understandable given the substantial deposit required. "

Affordable Locations and Buyer Support

For those seeking more budget-friendly options,Halifax identifies the North of England, including County Durham and Burnley, as offering better value for first-time buyers. Bryden encourages prospective homeowners to explore various support schemes such as first-time buyer mortgage products and Shared Ownership. She adds,“Consulting a mortgage adviser or broker can be an essential step in understanding affordability and securing the right financial plan to achieve homeownership.”