First-Time Buyer Numbers Rebound in 2024, Despite Challenges

First-Time Buyer Numbers Rebound in 2024

The number of first-time buyers in the UK saw a significant increase in 2024, jumping by nearly 20% compared to the previous year. This positive trend is likely due to an improvement in mortgage affordability, with interest rates easing and stabilizing.

Despite the rebound, the total number of first-time buyers in 2024 remained lower than the pre-pandemic levels of 2022. The average first-time buyer is now 33 years old, two years older than a decade ago. This increase in age reflects the challenges of saving for a deposit and rising house prices.

The average deposit for a first-time buyer is currently £61,090, with the average starter home priced at £311,034. This can be a significant financial burden for those with a single income, leading many to team up with partners or friends to purchase a property.

Looking ahead, experts expect modest house price growth in 2025. However, the upcoming stamp duty threshold reductions may not provide significant relief for first-time buyers in the short term. The "nil rate" stamp duty band for first-time buyers will reduce from £425,000 to £300,000 from April 1st, but this may not be enough to offset the rising cost of housing.

Despite the challenges, first-time buyers still account for more than half of all new mortgages. This demonstrates the continued desire for homeownership among younger generations, even in the face of economic uncertainty.