67% of borrowers purchasing a property over the last 12 months were first-time buyers, according to data from Mortgage Advice Bureau’s MyMAB and Homebuying apps.
The findings underscore the critical role that first-time buyers play in the UK housing market, with the remaining percentage of borrowers split across homemovers (19%) and those remortgaging their current property (14%).
On average, a first-time buyer in the UK is 34 years old, with an average yearly income of £35,900. According to the research, first-time buyers actively saved an average of £585 per month, building on initial deposit savings of around £24,500, with the aim of purchasing a property valued at £226,900. 47% of first-time buyers were purchasing a property alone in 2024, supporting MAB’s previous research into the rise in solo mortgage applicants.
A notable 31% of first-time buyers have dependents, indicating that family needs are a significant consideration in their property search. Despite 97% being in full-time employment, 43% had to leverage additional income on top of their salaries to support their homeownership goals.
Regional differences
Though only comprising 7% of the total sample, first-time buyers 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 an average of £340,600, and aim for a longer buying journey of 18 months. Interestingly, 65% were buying alone, and fewer (16%) report having dependents, reflecting the higher cost of living in the capital.
Meanwhile, prospective buyers in the rest of England (74% of which are first-time buyers) largely mirror national trends though with slightly lower incomes (£34,400), deposit sizes (£23,800), and expected property prices (£220,300), compared to the overall UK average.
Scottish first-time buyers (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. Notably, a higher proportion of borrowers are buying alone (58%) and have fewer dependents (23%). Given the lower average property prices in Scotland, this implies that borrowers on higher incomes won’t need to stretch as far financially to get on the property ladder.
This also attests to the higher average age in Scotland, where borrowers may have had more time to accumulate savings, establish careers, and reach a point of financial independence where buying alone becomes viable.
Welsh first-time buyers (70% of the regional dataset) are the youngest at 33, with slightly lower incomes (£35,300), they exhibit strong saving habits (£740 per month) and the highest proportion of dependents (37%). This suggests their homeownership goals are more family-focused. Although average incomes are slightly lower in Wales compared to the rest of the UK, the cost of living can also be generally lower, meaning that a larger proportion of their income can be allocated to savings. Notably, 54% of first-time buyers in Wales leveraged additional income - the highest across all regions.
Aspiring first-time buyers in Northern Ireland (80% of the regional dataset) navigated the market with the lowest average income (£29,900), purchasing the most affordable properties (£177,500) on average. Despite lower monthly savings (£390), they amassed a relatively higher initial deposit of £28,000.
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, commented: "The first-time buyer market is certainly multifaceted in nature, and our research only goes to underscore that. Just as there is no such thing as a typical first-time buyer, there’s also no ‘one-size-fits-all’ when it comes to finding the right mortgage.
“However, there’s always more we can be doing, as universal challenges like affordability, regional differences in property prices, and the cost-of-living will always remain. The average age of a first-time buyer at 34 is much too high, and is a blatant call to action for our industry to step up and do more. Understanding these trends is crucial for the 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. With a wealth of opportunities at their fingertips, this is where the expertise of a broker comes into its own, helping customers get mortgage ready with a deal that aligns with their financial and personal goals.”
