First-time buyers accounted for an overwhelming 67% of UK mortgage activity in 2024, according to new research from Mortgage Advice Bureau (MAB), signalling a shift in the housing market’s centre of gravity.
Drawing on user data from its MyMAB and Homebuying apps, MAB reveals that first-time buyers have become the dominant force in property purchasing, eclipsing homemovers (19%) and remortgagers (14%).
The average first-time buyer is 34 years old, earns £35,900, and saves £585 a month – building towards a deposit of £24,500 on homes priced around £226,900.
A striking 47% are purchasing alone, and nearly one in three (31%) has dependents, illustrating the complexity of motivations at play. Despite high employment levels (97% in full-time work), 43% rely on additional income to realise their homeownership ambitions.
REGIONAL DISPARITIES
Regionally, the picture varies sharply. In London, where 81% of first-time mortgage applicants are navigating a notoriously high-cost market, buyers average £51,000 in income and save £760 per month to target homes priced at £340,600.
Elsewhere, affordability improves. In Northern Ireland, homes average £177,500, and buyers contribute the highest average deposits relative to income despite earning the least.
The report also notes a growing trend towards solo buying across the UK, particularly in Scotland (58%) and London (65%), indicating broader shifts in household formation, career stability, and lifestyle aspirations.
NO ONE-SIZE FITS ALL
Rachel Geddes, Strategic Lender Relationship Director at Mortgage Advice Bureau, says: “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.”
BRIGHT FUTURE
But she adds: “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.”
As the housing landscape evolves, the first-time buyer continues to redefine the shape – and future – of the UK residential property market.
