“Demand remains high, and with an increasing number of lenders enhancing their affordability criteria and offering innovative borrowing solutions, there’s never been a better time for aspiring buyers to get on the property ladder.”
– Rachel Geddes, strategic lender relationship director at MAB
Data from Mortgage Advice Bureau’s (MAB) MyMAB and Homebuying apps has revealed 67% of borrowers who’ve purchased a property in the last twelve months were first-time buyers (FTBs). The remaining percentage of borrowers was split across homemovers (19%), and those remortgaging their current property (14%).
The average age of an FTB in the UK is now 34 years old, with an average yearly income of £35,900. MAB found FTBs saved an average of £585p.m, building on an initial deposit of approximately £24,500 – intending to purchase a property valued at £226,900.
31% of FTBs have dependents, indicating that family needs are a significant consideration during their property search. Despite 97% working full-time, 43% had to secure additional income to support their homeownership goals.
Notably, 47% of FTBs were purchasing a property on their own in 2024, supporting MAB’s previous research into the rise of sole mortgage applicants.
FTBs in London (comprising 81% of the regional dataset) face the most significant financial hurdles. At an average age of 36, they earn considerably more (£51,000), have larger deposits (£37,000), and save more monthly (£760).
However, they aspire to purchase properties costing, on average, £340,600 and aim for a longer buying journey of 18 months. 65% were purchasing a property on their own, and fewer (16%) reported having dependents.
Prospective buyers in the rest of England (74% of whom are FTBs) mirror national trends, but with slightly lower incomes (£34,400), deposit sizes (£23,800), and expected property prices (£220,300).
Scottish FTBs (66% of the regional dataset) typically aged 35, with an average income of £37,200, are buying properties at a significantly lower average price of £196,500. A higher proportion of borrowers are solo mortgage applicants (58%) and have fewer dependents (23%).
Welsh FTBs (70% of the regional dataset) are the youngest at 33, but with slightly lower incomes (£35,300). However, they exhibit strong saving habits (£740p.m) and the highest proportion of dependents (37%).
In Northern Ireland, aspiring FTBs (80% of the regional dataset) navigated the market with the lowest average income (£29,900), purchasing the most affordable properties (£177,500). Despite lower monthly savings (£390), they amassed a relatively higher initial deposit of £28,000.
“The FTB market is certainly multifaceted. Just as there is no such thing as a typical FTB, there’s also no ‘one-size-fits-all’ when it comes to finding the right mortgage,” explained Rachel Geddes, strategic lender relationship director at MAB.
She believes there’s more to do, as universal challenges like affordability, regional differences in property prices, and cost of living continue to impact FTBs. “The average age of an FTB at 34 is much too high, and this is a blatant call to action for our industry to step up and do more,” Rachel stressed.
“Understanding these trends is crucial for policymakers, lenders, and service providers who are looking to support this crucial segment of the UK housing market. That being said, the future’s looking bright.
“Demand remains high, and with an increasing number of lenders enhancing their affordability criteria and offering innovative borrowing solutions, there’s never been a better time for aspiring buyers to get on the property ladder,” Rachel concluded.