Survey highlights compromises and changing trends among new homeowners
Four in five first-time buyers (80%) moved back in with their parents to save for a property deposit, indicating that many buyers are making significant compromises to enter the housing market.
The research by mortgage lender TSB, which involved more than 1,000 individuals who purchased their first home in the past year, showed that 75% of the respondents chose properties with fewer bedrooms, less space, or limited outdoor areas in order to secure a home in their preferred location. While 22% said they had bought their ideal property, 38% reported that their new home met most of their expectations but required some concessions. Nine percent said they made major compromises, prioritising affordability and location over other features.
“This is an increasing trend,” said Craig Calder, director of secured lending at TSB. “Many made sacrifices to meet their deposit targets – such as moving in with parents, and taking a second job. To secure the best deal for your housing and affordability needs, do speak with a broker, or your bank.”
“This has been a growing trend for some time, indicating how expensive it is for first-time buyers to get onto the housing ladder, so much so that they have to make enormous sacrifices and/or depend upon financial help from their relatives just to purchase a property,” added Mary-Lou Press, president of industry body NAEA Propertymark.
“What is needed to make housing more affordable is targeted help, and we are seeing many financial institutions take a lead here with flexible mortgage products, as well as a sustainable supply of new homes that will stabilise supply and demand levels, which can hopefully be achieved by the UK government and the devolved administrations meeting their individual housing targets.”
For mortgage brokers, these trends point to a growing need to guide first-time buyers through complex financial arrangements, including family support and longer mortgage terms. Brokers are likely to see increased demand for personalised advice on flexible mortgage products and on navigating compromises in property choice.
According to the survey, nearly all first-time buyers (96%) received some form of financial assistance with their deposit. Family members provided support to 68% of respondents, while 57% received help from friends.
To save for a deposit, 38% of buyers postponed major purchases, 37% reduced their social activities, and another 37% took on additional employment. On average, first-time buyers spent just under three years (2.95 years) saving, with those in Wales taking the longest (3.39 years) and those in the East Midlands the shortest (2.56 years).
Before purchasing, first-time buyers paid an average of £960 per month in rent. After buying, 45% felt more financially secure, while 39% reported feeling relieved.
TSB’s customer data shows that the average mortgage term for first-time buyers is now 31 years, down from 32 years in 2024. The typical deposit size across the UK is 18.9%, with London buyers putting down the highest average deposit at 23%, compared to 13% in Wales. The average age of first-time buyers has risen to 32, up from 31 last year, with London, the South East, and East Midlands having the oldest average buyers at 34 and 33 years, respectively. Yorkshire & The Humber recorded the youngest average age at 30.
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