In 2022, over half of all homes purchased with a mortgage were bought by first-time buyers. The number of first-time buyers was the second highest in the past 14 years, reaching an estimated 370,000 people. In 2021, the pandemic and stamp duty holiday led to higher activity levels, resulting in 400,000 first-time buyers.

Despite a small decrease from 2021 to 2022, the number of first-time buyers was still 5% higher than in 2019 before the pandemic. 53% of all mortgage-purchased properties were bought by first-time buyers in 2022, compared to 50% in 2021 and 41% a decade ago.

The rise in first-time buyers was driven by low borrowing costs and high employment levels.

Low mortgage rates offset the 10% increase in average home prices, which reached £272,500. The closure of the Help to Buy Equity loan scheme, which allowed buyers to purchase a property with a 5% deposit and a 20% government-topped equity loan, may have also boosted the numbers.

The high number of first-time buyers is good for both the individuals and the housing market as a whole, as they play a vital role in buying properties at the bottom of the ladder and enabling others to trade up.

However, this year's first-time buyer numbers are likely to be lower due to rising mortgage rates and cost-of-living pressures.

Assistance for first-time buyers is still available, such as the First Homes programme, Shared Ownership, and the Mortgage Guarantee Scheme, which enables a 5% deposit purchase with a government guarantee.

The Lifetime ISA allows for up to £4,000 annual savings with a 25% government bonus, and the stamp duty threshold for first-time buyers has been increased to £425,000 on homes under £625,000 until 2025.

If you are a first-time buyer and are looking to get on the property ladder, speak with our team today by calling us on 0116 266 9977!