The Landscape for First-Time Buyers in the UK
Purchasing your first home is a significant step, one filled with excitement, anxiety, and a touch of confusion, sometimes. For a lot of people, it’s the largest purchase they’ll ever make, and it frequently can feel like navigating through a maze with no map in front of you. It’s a frightful place, the UK housing market, particularly when you start out, wondering what you’ll need, how long you’ll have to wait, and whether you’ll ever be ready to dive in.
In this post, we’ll look at everything from the average age that people are getting on to the property ladder, and how much deposit they’re laying down, to what kind of mortgage deals are available. Along the way, we will consider how affordability, regional disparities, and market trends are influencing the experience, and what the future may hold for those who dream of a place to call home.
How Old Are First-Time Buyers in the UK?
You may be surprised to learn that the average age of a first-time buyer in the UK is 33 years and 8 months, according to The Intermediary. This reflects the growing difficulty many face in getting on the property ladder.
However, this average masks significant regional differences. In Greater London, the average age rises to about 36 years and 8 months, while in Wales, first-time buyers are significantly younger around 31 years old . Meanwhile, in the North East, buyers also enter the market earlier, backed by lower average deposits of around £29,740, making it one of the more accessible regions
Why the variation? A big factor is affordability. London is legendary for high property prices, so people delay longer, save for bigger deposits or lean on family to help them along. By comparison, it’s possible to buy a home at a younger age in areas such as the North East and East Midlands, where homes are cheaper.
There’s also a wealth factor. The average salary varies significantly in these regions, and it directly affects how easily people can save. According to data from ThinkPlutus:
- Greater London: £38,281
- North East: £28,153
- Yorkshire and the Humber: £29,811
- East Midlands: 28,897
- South East: £32,823
- Scotland: £31,836
Of course, wages in London and the South East are generally higher, but combined with those high house prices, it still doesn’t always work out in buyers’ favour.
Looking a little further back in time, first-timers’ ages tell an intriguing story:
- 1980s: Mid 1980s benchmark was about 31. The Council of Mortgage Lenders reported the average age had risen to 34 by 2004, up from 31 in 1984. The Guardian
- 1990s: Early 1990s benchmark was about 31. A 2010 report compared the then-current average of 32 with 31 in 1991. The Guardian
- 2000s: By 2004 the average reached 34, a notable high point in that decade. The Guardian
- 2010s: Halifax places the UK average at 29 in 2011, rising to 32 by 2021, and above 30 in every UK region. Lloyds Banking Group
- 2020 pandemic period: Halifax shows the average around 32 through 2020 to 2021. Lloyds Banking Group
- 2023 to 2025: Halifax reports the average at 33 in 2024, the oldest in two decades. London averages 34 Lloyds Banking Group
How Much Are First-Time Buyers Putting Down?
One of the biggest obstacles is saving for a deposit. The average first-time buyer will need to save a deposit of around £61,090 in 2024, Finder.
But again, this average varies widely by region:
- Greater London £124,688
- South East £61,744
- Scotland £43,537
- East Midlands £40,402
- Yorkshire & The Humber £36,731
- North East £30,678
- UK average £61,090
The contrast between London and the rest of the country illustrates the affordability divide. Although £30,000 might cover a deposit in the North East, you will need over four times that amount in London.
Deposit for first-time buyers have grown notably more challenging. While a 5% to 10% deposit was sufficient during much of the 1980s and 1990s, today buyers are put down 20% of the purchase price, Consequently, saving for a deposit now takes longer and demands stronger financial discipline.
Some feel this is their insurmountable barrier, especially when the hike in rents and cost of living chips away at most of what they save.
What Is the Average First-Time Buyer Property Price?
According to the Gov.Uk, the average cost of a home that first-time buyers in the UK have managed to buy stands at around £286,000, as of April 2025. That’s 3% higher than last year.
Here’s how it breaks down by region:
- London: £554,811
- South East: £377,116
- East Midlands: £233,664
- Yorkshire and the Humber: £201,010
- North East: £154,900
- South West: £302,532
These figures help explain why Londoners have to wait longer and save up larger deposits. The cost of the average London home for a first-timer is over three times the price of a home in the North East.
This is also the case further afield from London, with the difference between wages and house prices meaning many are either pushing themselves to the brink or turning to shared ownership and government programmes to secure a toehold.
How Long Does It Take to Save for a Deposit?
The average length of time to save for a deposit in an average UK household is 9.6 years. That’s almost seven years of saving money, usually while renting, often confronted by rising expenses.
But like so many things, this can vary depending on the neighbourhood in which you live. The timescale is typically shorter outside London and the South East. For instance, up north in the Northeast or Yorkshire, you could save more quickly because homes are generally cheaper and deposits are lower.
But the cost-of-living crisis is a big problem. Many younger people are also dealing with higher rents and living costs, which eat into their ability to save. Springing from that is the fact that renters in London typically pay more each month towards staying in a property than the mortgage on an identical property would be, leading to a frustratingly long savings process.
What Mortgage Deals Are First-Time Buyers Getting?
When getting a mortgage, the vast majority of first-time buyers opt for fixed-rate mortgages, deciding between terms ranging from 2 to 5 years. Fixed rates offer some security, because payments are locked in even as interest rates rise and fall.
Mortgage lenders are also trying to entice first-time buyers. Government-backed initiatives, such as the Shared Ownership scheme, where buyers purchase a share of their property and rent the remainder, also help keep homes affordable.
The Mortgage Guarantee Scheme likewise seeks to incentivise lenders to bring back loans with lower deposits, which can sometimes be as low as 5%. However, these typically come with higher monthly payments and a more stringent affordability test.
Tempting as these schemes can be, they can also be complicated. First-time buyers must carefully balance their immediate benefits with their long-term costs.
How Are House Prices Impacting First-Time Buyers?
The housing market throughout 2023 and 2024 experienced an overall modest pace of price growth, although declines were observed in some areas, particularly in the South East. This sort of volatility is not good for buyer confidence.
When prices are volatile, some people pause, concerned about paying too much or seeing prices jump immediately after they make a purchase. Others scramble to get in before prices rise even further, sometimes stretching their means not too safely.
That kind of uncertainty can sideline some prospective buyers longer and sow additional stress into an already daunting process for many people.
Key Challenges Faced by First-Time Buyers
Here are some of the challenges first-time home buyers face:
- Increasing rent prices: Rents are so high that saving for a deposit is next to impossible in the higher-demand urban areas where prices are highest.
- Mortgage affordability tests: Lenders must now conduct stringent affordability checks, such as stress tests, which require buyers to prove they can handle a rate rise, effectively pricing some out.
- Wage stagnation vs property inflation: House prices have spiralled over decades, while wages have stagnated, leaving millions of workers struggling to keep up.
- Cost of living crisis: Rising energy bills, food costs and everyday outgoings have squeezed budgets, leaving less to save.
Solutions could entail widening shared ownership options, greater government intervention and support, and promoting new affordable housing developments. Yet, it’s a rough-and-tumble field that demands fortitude and a good deal of planning.
Conclusion: What’s Next for First-Time Buyers?
The picture for first-time buyers next year and beyond is mixed. Interest rates may stabilise, government schemes may change, but the prices of homes and the cost of living will continue to make saving and buying difficult for many of us.
There are, however, reasons to be hopeful. You can explore locations beyond London, where more affordable options are still available, and look into new lending products that can help. The experience of 2023‐2024 has also made buyers more cautious, a condition that would tend to have a stabilising influence on the market.
If you’re a first-time buyer, remain informed, be realistic about what you can afford, and consider expert advice. The road to buying your dream home may be long, and saving for it can be a challenging task.
It may be your hardest step, but it’s the beginning of a rejuvenating journey that’s homeownership, and owning your own home has numerous benefits.
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
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