The average age of FTBs is rising
At an average age of 33-years-old, first-time buyers are two years older than they were a decade ago and the oldest in two decades - and with persistent challenges in the economy and the cost-of-living, that age could continue to rise still further over the next 10 years.
Geography plays a part, it seems. The Shetlands Islands in Scotland have the youngest average first-time buyers, at 27-years-of-age, according to analysis from the lender, Halifax. At the other end of the scale, Slough in Berkshire and Sutton, South London, have the oldest first-time buyers at 38-years-old - five years older than the UK average.
More positively, the number of first-time buyers was up by 19% in 2024, with the typical cost of a first home around £311,000, and an average deposit of about £61,000. Undoubtedly, there is more to do to help first-time buyers achieve their property ownership dreams, so how can the industry help accelerate their progress so that purchasers can get on to the property ladder earlier?
Mortgage broker Kim Balasubramaniam (pictured left), co-founder of Versed, believes that she and her colleagues have a key part to play. “The rising average age of first-time buyers reflects deeper challenges, affordability, high rents, and limited supply, but brokers have a vital role to play in shifting that trend,” Balasubramaniam said. “We spend a lot of time educating clients early, even years before they’re ready to buy. It’s about helping them understand their numbers, build strong credit profiles, and make strategic decisions with savings and debt. We also work closely with clients to explore alternative routes to ownership, including Joint Borrower Sole Proprietor mortgages, gifted deposits, family-assisted schemes, or even shared ownership where appropriate. With the right advice and a tailored plan, we can often bring timelines forward by a year or more. It’s not a quick fix, but consistent, early guidance from a broker can absolutely move the needle.”
Neil Bird (pictured second from left), senior mortgage and protection adviser at Scottish-based CARA Mortgage Services, believes that the sector’s professionals are stepping up in a way that others aren’t. “To be honest, I think the industry is doing far more to combat the issue than government is,” Bird said. “The two biggest issues are ever increasing house prices, and potential buyers find it harder and harder to save up the required deposits, though obviously COVID and the cost of living have also had a big impact on many people over the past five years.
“We’ve seen the constant removal of government schemes which were designed to help FTBs, and the sector as a whole, such as the Help to Buy scheme and the Help to Buy ISA on both sides of the border, and in Scotland the removal of the LIFT scheme and the First Home Fund. Yet both governments are happy to take more and more money out of the sector by increasing Land and Buildings Transaction Tax and Stamp Duty, particularly when it comes to the Additional Dwelling Supplement (ADS) and Second Property Stamp Duty which have recently been increased to a staggering 8% in Scotland, and a starting rate of 5% in England and Wales. And how much of that money is going back in to the housing sector? Zero pounds.”
Lenders have meanwhile been very proactive and innovative over the last few years, in Bird’s view, introducing products aimed at making it easier for first-time buyers to put together the required deposit, while also boosting mortgage affordability. “For example, Skipton introduced their 0% deposit Track Record mortgage for renters looking to buy,” he said. “Accord have their £5,000 deposit mortgage, most of the major lenders will lend up to 95%, many of them even on new build houses, and several lenders have eased their gifted deposit rules, or enhanced their affordability models - and the number of lenders offering Joint Borrower Sole Proprietor mortgages is increasing all the time.”
Bird added: “As brokers, we need to work with our introducers to make sure that these positive and innovative changes from lenders are being talked about more. We’ve put together a Mortgage Myths campaign which we’ve been rolling out to our introducers which highlight many of the improvements we’ve seen in the market over the last few years that just aren’t getting talked about enough.”
Read more: Mortgage brokers – how to handle a 'no show'
How lenders might help first-time buyers
Neil Renwick (pictured second from right), director of CARA Estate Planning, considers that more lenders could offer products with enhanced salary multiples to young professionals who typically see their salary increase over the first decade in their chosen profession. “Some lenders have embraced the challenge, such as Nationwide’s Helping Hand product lending up to six times income for first-time buyers earning over £35k,” Renwick noted. “One of the biggest challenges facing young people wanting to get on the property ladder is saving a deposit, so as brokers we need to take a more holistic look at the options such as a family member helping out by gifting savings or perhaps releasing equity from their own homes by way of an ‘early inheritance’ so they can see their child or grandchild benefit from it in their lifetime.”
He added: “Speaking to these clients as early on in their journey as possible is key so that we can put proper plans in place. I’ve spoken to clients who are maybe 12 months away from purchasing and helped set out a clear plan to nurture them to the point where they are ready to start offering on their first property.”
Mike Hayes (pictured right), mortgage adviser at Neal Hayes Mortgages, acknowledges the challenge of helping first-time buyers. “It’s a very difficult task given the way in which house prices continue to rise faster than wages do,” Hayes said. “That gap is outside of a lender’s or adviser’s control and doesn’t show any signs of narrowing. I think the key to helping first-time buyers in the short term is to innovate products and policies, such as additional multipliers on higher earners and lender guarantees on deposits. The problem I think is that we, as an industry, are looking for short-term fixes to a long term problem.
“In the long term, the only solution that I can think of is to rapidly increase the number of houses that are built to help reduce the cost per home. The increase in new build homes would be a massive boost, but the Government and builders need to come to an agreement on providing a variety of homes on each estate to help service the variety of first-time buyers in the market.”
Meanwhile, Kasia Makarewicz (pictured inset, above), a mortgage and protection adviser at Step By Step Financial Solutions, commented: “The rising average age of first-time buyers underscores the growing impact of structural challenges such as affordability constraints, high deposit requirements and limited housing supply. While these issues cannot be resolved by any single organisation alone, the mortgage industry is well placed to contribute meaningfully to improving access to homeownership for younger buyers. Lenders, in particular, have an opportunity to develop and refine mortgage products that align more closely with the financial realities faced by today’s first-time buyers. This may include extending mortgage terms to 40 years, adopting more flexible loan-to-income ratios and expanding the availability of family-assisted mortgage options that do not necessarily require a cash gift.”
She continued: “There is further scope for lenders to revisit underwriting criteria that can unintentionally exclude large segments of potential borrowers. For example, reassessing how income is calculated for self-employed individuals, and placing greater recognition on how variable income sources - such as commission, overtime, or secondary employment - could lead to more inclusive affordability assessments. Continued innovation in these areas, combined with competitive rates and clear terms, would represent a meaningful step toward increasing market access for first-time buyers. At the same time, mortgage brokers play a vital role in supporting prospective buyers through what can often be a complex and overwhelming process. By offering clear guidance, early education, and access to a wider range of mortgage solutions, including those offered by specialist lender, brokers are instrumental in helping buyers navigate their journey onto the property ladder.”
Makarewicz added: “Ultimately, addressing the needs of today’s first-time buyers requires both product innovation and tailored advice. As the financial landscape continues to evolve, it is essential that the industry adapts accordingly to ensure homeownership remains an achievable goal for the next generation.”
Eric Miller (pictured inset above), a broker at Affinity Group, believes the majority of support for first time buyers needs to come from outside the mortgage industry. “It starts with financial education in schools, teaching people how to budget, save and invest,” Miller reasoned. “There is also a large percentage of the wealth held by the older generations and the Government need to find a way to encourage these funds to be released to the younger generation. Knowledge is power when it comes to getting the right tax planning advice for those with the wealth to share.
“The mortgage industry has seen a number of products to encourage first time buyers. Enhanced loan to income is now offered by more lenders as are shared ownership and joint borrower sole proprietor mortgages. There are other solutions including rent to buy and 0% deposit mortgages which have had varying success. I think people need to just know there are solutions, but the advice is rather bespoke. We encourage people to talk to their family at an early stage and not to be afraid get mortgage advice in order to understand their options early.”
