Rising First-Time Buyer Age in England: Key Insights
Summary:
The average age of first-time buyers in England has increased from 32 to 34 since the pandemic, with London’s average reaching 35, according to the latest English Housing Survey. Rising house prices and higher deposit requirements, averaging £36,500, have made homeownership increasingly challenging. Mortgage holders now spend 19% of their income on repayments, while private renters allocate 39%, with only 58% expecting to ever buy a home. This trend highlights growing affordability issues and the need for financial compromises among aspiring homeowners.
What This Means for You:
- Plan for larger deposits: Start saving early or explore government schemes like Help to Buy or shared ownership.
- Consider joint applications: Only 29% of first-time buyers are single-person households, so pooling resources may increase affordability.
- Assess long-term financial commitments: 62% of first-time buyers opt for 30-year mortgages, which could mean higher lifetime interest costs.
- Monitor market trends: Falling house prices could lead to negative equity for buyers with smaller deposits.
Original Post:
The average age of a first-time buyer in England has risen from 32 just before the pandemic to 34 now, official statistics show.
This two-year increase in the mean age of first-time buyers occurred between the 2019/20 and 2024/25, the latest English Housing Survey reveals.
In London, the average age of first-time buyers is even higher at 35.
Home ownership levels have remained stable over the same timeframe at 65%.
In 2024/25, 29% of people had a mortgage, 36% owned outright, 19% rented privately and 16% rented in the social sector.
The average weekly mortgage payment in England was £242 and £375 in London.
The average weekly private rent was £250 for England and £393 in the capital.
Those with a mortgage spent 19% of their household income on mortgage payments, whereas private rent payments, with housing support excluded, were 39% of income.
Only 58% of private renters ever expect to buy, the survey found.
Hargreaves Lansdown head of personal finance Sarah Coles says: “The combination of over-stretched renters and higher house prices means the average age of a first-time buyer has hit 34.
“It’s hardly surprising it takes so long to save up when you consider that the average deposit was £36,500.
“It means the door is closing on all sorts of would-be buyers.
“It’s far more difficult to buy alone: only 29% of first-time buyers were one-person households.
“It also means you need to be a higher earner.
“People with mortgages are concentrated in the two fifths of people with the biggest incomes.”
She adds: “It means people are making compromises with real consequences. They’re having to pay the mortgage for longer, so of those first-time buyers who had a mortgage, almost two thirds (62%) had a repayment period of 30 years.
“They’re also having to buy with a deposit that makes up a smaller percentage of the property value.
“Over half of first-time buyers (59%) paid a deposit of less than 20%, and 16% paid less than 10%.
“Unfortunately, borrowing more means facing higher mortgage payments. Meanwhile, owning a smaller stake in the property means that if we face a period of falling prices, more new buyers may risk falling into negative equity.”
Extra Information:
Explore government schemes to ease the burden: Help to Buy offers assistance with deposits, while Own Your Home provides guidance on shared ownership options. For a deeper dive into housing affordability, read the Nationwide House Price Index.
People Also Ask About:
- What is the average deposit for a first-time buyer in 2024? The average deposit is £36,500.
- How much of their income do renters spend on housing? Private renters spend 39% of their income on rent.
- What percentage of first-time buyers use 30-year mortgages? 62% of first-time buyers opt for 30-year mortgages.
- How has the pandemic affected first-time buyers? The average age of first-time buyers has risen by two years since the pandemic.
- What are the risks of a smaller deposit? A smaller deposit increases the risk of negative equity if house prices fall.
Expert Opinion:
Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, warns: “The growing gap between incomes and housing costs is pushing aspiring buyers to make significant financial compromises. Longer mortgage terms and smaller deposits may provide short-term solutions, but they also expose buyers to higher long-term costs and potential risks like negative equity.”
Key Terms:
- First-time buyer age increase 2024
- Average deposit for first-time buyers UK
- Mortgage repayment percentages UK
- Private rent affordability England
- Negative equity risks for new buyers
- Government homebuying schemes 2024
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