It’s a first-time buyers’ market

According to recent data from Halifax, first-time buyers now make up the largest demographic of purchasers in the UK property market. In 2018, the number of first time buyers reached a total of 372,000, which accounted for the majority of home purchases for the first time in 23 years, since 1995.

The first-time buyers shift

Over the last seven years, there has been a continued increase of first-time buyers, despite slow market conditions. If we look back even further to ten years ago, the overall number of first-time buyers in the market today has increased by 92% from its all-time low of 192,300 in 2008.

Over the last ten years, the average price paid for a first home has risen by 39%, and the average deposit has increased by 57%. Across the whole UK, first-time buyers stump up an average deposit of £32,841, whereas those in London have to front a staggering £110,656 on average. Whilst properties prices have increased over the past decade, deposits are not as high as they once were, but remain at around 15% of the total purchase price.

It’s a great time to buy…

The current market provides many great opportunities for first-time buyers, with around one in every eight homes for sale across the UK experiencing a price cut in January, at an average reduction of £20,000.
London is seeing some of the best bargains for first-time buyers. Statistics from LonRes show that over 50% of properties in several sought after areas are experiencing price reductions before they even find a buyer, with an average discount of 11.5%. Fulham, in particular, has some of the best deals on the market right now and is one of the best areas in London to buy a first home. Join Invisible Homes to find off-market properties for sale in Fulham that are ideal for first-time buyers.

As it currently stands, first-time buyers now make up just over 50% of all house purchases with a mortgage, which shows an increase from only 38% ten years ago. In total, mortgage providers advanced £62bn to first time buyers last year, with terraced houses and semi-detached properties continuing as the preferred property, making up 67% of mortgages for first homes last year.

A first-time buyers’ future

Russel Galley – Halifax managing director explains that first time buyers arriving onto the property ladder are crucial for the overall health of the UK housing market. Despite the challenges of a shortage of homes and for many, raising a mortgage, the continued growth of first-time buyers in the market shows positivity. The future also looks set to be promising for first-time buyers, with the prospect of low mortgage and interest rates, rising incomes, and an influx of initiatives such as Help To Buy ISAs, Loans and Shared Ownership schemes to help people onto the property ladder.


Sources: Halifax (2019)