First-time buyers are continuing to play a major role in the UK housing market, making up 54% of all purchases last year – the highest proportion on record.
The Challenges of Deposit and Affordability
While affordability remains a challenge, industry professionals say there are more routes into homeownership than many buyers may realise.
“Last year the average purchase price for a first-time buyer was more than £310,000,” said Gareth Gale, Corporate Account Manager at Halifax Intermediaries. “The average deposit was north of £60,000. When you add that into the mainstream media reporting, it puts a lot of people off. But contrary to that, 2024 has seen a significant rise in the number of first-time buyers versus 2023 – we’re up 20%.”
New Products Offering Real Solutions
That upward trend is being supported by a range of products designed to help overcome two of the biggest barriers: deposit and affordability. Halifax, for example, offers 5% deposit mortgages under a Mortgage Guarantee Scheme, as well as shared ownership options that can make the first step onto the property ladder more attainable.
The Role of Family and Intergenerational Wealth
“There are lots of options out there for people looking to get on the ladder,” said Wayne Donovan, Mortgage and Protection Advisor at Cornerstone Finance Group. “Some lenders will consider up to 100% loan-to-value for renters who can evidence regular payments. Others will accept minimum deposits of just £5,000. And for those needing family support, joint borrower sole proprietor arrangements are becoming more widely available.”
The role of intergenerational funding is also expanding.
“If you took the Bank of Mum and Dad as a lender, it would be the tenth biggest mortgage lender in the UK,” said Gareth. “Equity release, later life mortgage products, or gifted deposits all help unlock the wealth of the older generation to support the younger one.”
Why Mortgage Advice Matters More Than Ever
But while the product landscape is evolving, professionals agree that sound advice remains key.
“For many, this is a complex and emotional journey,” said David Huckle, Head of Infimo Ltd. “There’s so much information out there it can be confusing. It’s important to speak to a mortgage professional who knows the market and can offer that one-stop shop option.”
That view is echoed by Graeme Lewis, Head of Network Engagement at Cornerstone Finance Group.
“We’re still seeing high activity in the network from first-time buyers,” he said. “It’s vital that mortgage advisers include them in their portfolios. If you can support a client from the start of their journey, you build value into your business over the long term.”
Technology and Training Are Changing the Game
Technology is also playing a growing role in that support.
“We’ve got fantastic tech that allows advisers to focus on what the client wants and needs, not just filling in a form,” said Graeme. “We also offer regular training sessions and have experts in areas like equity release on hand, so no adviser is left to manage these conversations alone.”
The Industry’s Shared Responsibility to First-Time Buyers
As rates begin to stabilise and lenders bring forward new products, the message from across the industry is consistent: the demand is there, the tools are available, and advisers and lenders have a shared responsibility to guide first-time buyers through the process.
As Gareth puts it: “It’s a complicated market, but we are the experts. There are a lot of solutions, and we’re here to support customers every step of the way.”
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