A new study from Hamptons has shown that as of 2024, first-time home buyers have bought 33% of homes in Britain, a jump from the 29% seen in 2023.
This trend could lead to the highest-ever rate of first-time buyers in the market if it persists, especially given the comparison to 2014’s figure of just 17%.
The increase has been linked to readily available high loan-to-value loans and low interest rates, along with more stringent regulations on the buy-to-let sector.
Aneisha Beveridge, Hamptons’ head of research, noted: “Seeking relief from the competitive rental sector, we are seeing more first-time buyers in the sales market than ever before, now representing a third of all buyers.
“This rise is remarkable, especially as it has occurred with minimal help from government support schemes. Even with the high mortgage rates limiting their borrowing options, many first-time buyers are settling for smaller properties just to own a home.
“The housing market is still largely influenced by those with the financial means to purchase, rather than by all those who aspire to buy. Moreover, the surge in first-time buyers this year is somewhat compensating for the dip in purchases we witnessed in 2023.
“Unless we see a significant drop in rates, mirroring the situation after 2008 when the lack of high loan-to-value loans pushed home ownership out of reach for many, we may see the growing trend of first-time buyer home purchases reverse, becoming a privilege for only the wealthiest households.”
London exhibited the most notable growth. There, first-time buyers represented 50% of all home sales this year, which is up by 9% from last year’s 41% and a considerable jump from 28% a decade ago.
