What's happened
In 2024, the UK saw a significant rebound in first-time buyers, with 341,068 new entrants, a 19% increase from 2023. Despite rising house prices and deposit challenges, first-time buyers accounted for over half of all mortgage purchases. The average buyer is now 33 years old, reflecting changing demographics in the housing market.
What's behind the headline?
Key Insights
- Demographic Shifts: The average age of first-time buyers has risen to 33, indicating a trend towards older buyers entering the market. This shift may reflect economic pressures and changing societal norms regarding homeownership.
- Regional Variations: Scotland has seen a notable increase in first-time buyers, with a 21% rise in 2024. The average deposit in Scotland is lower than in England, making it more accessible for young buyers.
- Impact of Government Schemes: The LISA has proven effective in aiding first-time buyers, with significant withdrawals reported in cities like Edinburgh and Glasgow. The government bonus incentivizes savings, contributing to the increase in home purchases.
- Market Dynamics: Despite a rebound in first-time buyers, the overall housing market remains challenging. Rising house prices and upcoming changes to stamp duty thresholds may complicate future purchases, particularly for those relying on joint mortgages.
- Future Outlook: Experts predict modest house price growth in 2025, but the reduction in the stamp duty threshold could deter some buyers. The market will likely continue to see a mix of joint purchases as individuals seek to navigate affordability challenges.
What the papers say
According to The Scotsman, the LISA has significantly aided first-time buyers, with a 54% increase in Scottish house purchases using LISA savings last year. Vicky Shaw from The Independent highlights that first-time buyers made up over half of all mortgage purchases, reflecting a recovery from previous declines. The Bank of Scotland noted a 21% rise in first-time buyers in Scotland, emphasizing the appeal of the region's housing market. Meanwhile, The Guardian reported that Aberdeen is the most affordable city for single buyers, showcasing regional disparities in housing affordability. These insights collectively illustrate the complexities of the current housing market and the varying experiences of first-time buyers across the UK.
How we got here
The Lifetime ISA (LISA) was introduced to help young people save for their first home or retirement. Recent data indicates a growing reliance on this savings tool, particularly in Scotland, where first-time buyers have increased significantly. The housing market has faced challenges, including rising prices and deposit requirements, impacting buyer demographics.
Go deeper
- What are the benefits of the Lifetime ISA?
- How do house prices vary across the UK?
- What challenges do first-time buyers face today?
Common question
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Why Did First-Time Buyers Surge in 2024?
In 2024, the UK housing market witnessed a remarkable increase in first-time buyers, with a 19% rise compared to the previous year. This surge raises important questions about the factors driving this trend, the challenges these buyers face, and what it means for the future of the housing market. Below, we explore the key questions surrounding this significant shift.
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How Are Rising House Prices Affecting First-Time Buyers?
The housing market has seen a significant shift in 2024, with a notable increase in first-time buyers despite rising house prices. This page explores how these trends are impacting new entrants into the market, the strategies they are employing, and the regions where activity is booming. Understanding these dynamics can help potential buyers navigate the current landscape.
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What Are the Demographic Trends Influencing First-Time Home Buyers in 2024?
The landscape of homeownership is evolving, particularly for first-time buyers. In 2024, the UK experienced a notable surge in first-time buyers, with demographic shifts playing a crucial role. Understanding these trends can help prospective buyers navigate the market more effectively. Below, we explore key questions surrounding the demographics of first-time buyers and the factors driving their decisions.
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What Factors Are Driving the Surge in First-Time Home Buyers in the UK?
In 2024, the UK housing market witnessed a remarkable increase in first-time buyers, with a 19% rise compared to the previous year. This surge raises important questions about the factors influencing this trend, the impact of rising house prices, and the demographic shifts shaping the market. Below, we explore key questions surrounding this phenomenon.
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How Will New US Tariff Changes Affect Online Shopping?
Recent changes to US import rules, particularly the revocation of the de minimis exemption, are set to reshape the landscape of online shopping. With significant implications for both retailers and consumers, many are left wondering how these changes will impact prices, delivery times, and the overall shopping experience. Below are some common questions and answers regarding these tariff changes.
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What is driving the surge in first-time buyers in the UK housing market?
The UK housing market has seen a remarkable increase in first-time buyers, with a 19% rise in 2024 compared to the previous year. This surge raises questions about the factors influencing this trend, the challenges buyers face, and how demographics are shifting in the housing landscape. Below, we explore key questions surrounding this phenomenon.
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What Economic Factors Are Influencing the UK Housing Market in 2025?
As the UK housing market evolves in 2025, various economic factors are at play, shaping the experiences of buyers and sellers alike. Understanding these influences can help potential homeowners navigate the complexities of the market, especially first-time buyers who are facing unique challenges. Below, we explore key questions surrounding the current economic landscape and its impact on housing affordability and accessibility.
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Halifax is a British banking brand operating as a trading division of Bank of Scotland, itself a wholly owned subsidiary of Lloyds Banking Group.
It is named after the town of Halifax, West Yorkshire, where it was founded as a building society in 1853.
