The value of the first-time buyer market topped £106 bilion in 2024, driven by both an increase in first-time buyer numbers and property prices.
The analysis of first-time buyer data from GetAgent.co.uk found that the number of first-time buyers climbed by a notable 18.8% in 2024, reversing the two consecutive years of decline and topping 341,068 buyers getting their first foot on the ladder.
This increase in first-time buyer market activity was driven by a number of factors, not least improvements to mortgage affordability, as mortgage rates reduced from the peak seen in mid-2023 in line with reductions to the Bank of England base rate.
With interest rates no longer rising, a greater degree of market stability also boosted confidence amongst first-time buyers and, during the latter stages of the year, the government’s decision not to extend stamp duty relief thresholds is also thought to have spurred many first-time buyers into action.
INCREASING MARKET ACTIVITY
With market activity increasing the average price paid for a first home also climbed in 2024, up by 7.9% to £311,034.
As a result, the first-time buyer housing market across the UK was worth a staggering £106.1 billion in 2024, with the South East home to the most valuable first-time buyer market at £25.7 billion, followed by London (£22.8 billion) and the North West (£8.2 billion).
MORE HELP NEEDED
Despite this strong performance by first-time buyers in 2024, a survey of the UK property industry, conducted by GetAgent, found that 75% believe the government should be doing more to help first-time buyers onto the property ladder.
When asked what form of help should be introduced, the majority would like to see a wider range of mortgage products available with lower deposit requirements.
A commitment to building more affordable homes also ranked highly, as did the return of Help to Buy.
CALLS FALLING ON DEAF EARS
Colby Short, Co-founder and Chief Executive of GetAgent.co.uk, says: “First-time buyers form a significant proportion of market activity. However, while the 341,068 first-time buyers who climbed the ladder in 2024 represent a notable increase from the previous year, this figure remains some way off the 405,250 peak seen in 2021 and is only the sixth highest annual total over the last decade.
“It’s not surprising that the industry is calling for more support to help first-time buyers climb the ladder, with initiatives designed to lower the initial cost of buying and the provision of more affordable housing stock.
“Unfortunately, it looks as though these calls will largely fall on deaf ears, as the current government has made no suggestion it will introduce first-time buyer relief and whilst this could appear in this month’s budget, it’s looking highly unlikely.”
