Getting a foot onto the property ladder has always presented challenges. Research suggests FTBs could currently be experiencing the most expensive conditions in 70 years1.
Who is most affected?
In the current property market, a successful first purchase often requires two high incomes plus financial support from family members. Therefore, those who are buying alone, have lower incomes or cannot access help from the Bank of Mum and Dad, are most likely to lose out.
How old?
Hopeful FTBs are forced to stay at home or in the private rented sector for longer. The average age of a first time buyer is now 36, having risen from 32 in 20042.
Delaying proceedings
Ongoing market uncertainty has caused hopeful homeowners to put their dreams on hold; over the last year, 49% of prospective FTBs have postponed their plans3. Just over half (53%) said high house prices were the main reason for delaying, while 41% cited rising mortgage costs.
Making a compromise
FTBs will likely need to consider different options if they want to get on the property ladder; 38% of those who have become homeowners in the last five years said they had to compromise. For example, 40% purchased a home that needed some renovation and 34% moved to a different location.
Decline in homeowners
Overall, home ownership has fallen in the last 20 years, and the number of residential owner-occupier mortgages has decreased by more than two million since the rate peaked in 20024. The UK has not seen such a low level of outstanding mortgages since the end of the 1980s.
Advice is key
We understand the difficulties that first-time buyers may face. You can make your home-owning dreams a reality with the right advice.
1BSA, 2024, 2ONS, 2024 , 3Nationwide, 2024, 4BSA, 2024
As a mortgage is secured against your home or property, it could be repossessed if you do not
keep up mortgage repayments. Think carefully before securing other debts against your home.
