Over 60% of first-time buyers are teaming up with someone else to buy their first home, according to Halifax.

The lender says that joint first-time buyers now account for 63% of all mortgage transactions, with mortgage completions now in joint names with two or more people.  

Halifax says this is unsurprising, given that buyer deposits have increased over the last decade. First-time buyers put down an average deposit of £53,414 last year, which is £21,000 more than ten years ago, says the lender. This marks an increase of 67%.

More than a year’s pay for a home deposit

Salaries have naturally increased in the past decade, and the average salary now stands at £43,257 – an increase of 30%. This, of course, means that first-time buyers will have to raise more than a year’s average pay for a deposit on their first home.

However, first-time buyers continued to make up the most home loans last year, with 53% of home purchases from first-time buyers. That said, the overall number of first-time buyers fell by 21% in 2023 compared to 2022.

‘Following a record year in 2021, unsurprisingly in view of the wider economic environment, the number of first-time buyers joining the property market fell again in 2023 to around 293,000,’ says Kim Kinnaird, Director of Halifax Mortgages. ‘Despite this drop, new buyers made up over half of all home loans. However, to get a foot on the ladder, most people are now buying for the first time in joint names.’

Average house price for first-time buyers

The average house price for buyers entering the property market in 2023 was £288,136 – 5% lower than the previous year.

There are several schemes to help prospective first-time buyers get onto the property ladder, including the Mortgage Guarantee Scheme (which allows buyers to borrow up to 95%) and the First Homes scheme.

The average first-time buyer is now over 30 years old in all regions, with the UK average at 32 years old.

Kinnaird adds: ‘The overall fall in house prices in 2023 will go some way to helping people get on the ladder for the first time, but these buyers are still dependent on a steady supply of properties in their price range while they are faced with the continued pressure of saving for a deposit when rent and living costs are high.’

If you’re hoping to buy your first home this year, we recommend speaking to an experienced mortgage broker to explore your options. A good broker will have access to multiple mortgages from a range of lenders.

Tips if you’re hoping to buy your first home

Other things you should consider include…

✅ Save as much as you can for a deposit – the more you save, the greater your chance of getting a more competitive mortgage loan.

✅ Be clear on your income and expenditure and know what you owe on loans and credit card balances

✅ Make sure you’re on the electoral register at your current address

✅ Be cautious if your work situation has the potential to be unpredictable and consider if now really is the right time to buy a property

If you want to find out how much you could borrow, try our mortgage calculator.

more news