First-Time Buyers Are Getting Older

about 1 year ago

The dream of homeownership remains a cornerstone of aspiration for many, yet it is increasingly one pursued later in life. According to the latest English Housing Survey, the number of first-time buyers in England reached an impressive 975,000 over the three years to 2023/24, averaging 325,000 a year. This is a remarkable achievement considering the rising challenges to affordability, including escalating property prices and climbing mortgage rates.

However, the age at which first-time buyers are stepping onto the property ladder has been steadily increasing. The average age for a first-time buyer in England (excluding London) now stands at 33.6 years, a notable rise from 32.1 years five years ago and 31.9 years in 2014. This trend reflects the growing financial pressures facing younger generations as they save for deposits, navigate stricter lending criteria, and contend with an increasingly competitive housing market.

Regional Variations: London vs. Rest of England While the national trend points to older first-time buyers, the picture in London tells a slightly different story. The capital continues to see some of the oldest first-time buyers, with the average age currently at 34.8 years. However, this figure has bucked the national trend by falling slightly in the last year. It also remains lower than several previous peaks, such as in 2013/14 and 2018/19.

London’s unique housing market dynamics, including higher property prices but also distinct affordability measures like shared ownership schemes, may explain these fluctuations. Nevertheless, the disparity between London and the rest of England highlights the regional nuances in housing accessibility.

A Persistent Aspiration Amid Challenges

Despite these challenges, the desire for homeownership endures among renters. According to the survey, over 57% of private renters—equivalent to 2.6 million households—still intend to buy a home in the future. Encouragingly, a quarter of these renters plan to make their purchase within the next two years, signaling continued optimism and determination despite affordability concerns.

For many renters, the leap to homeownership requires years of saving, careful financial planning, and sometimes assistance from family or government schemes. The ongoing rise in the average age of first-time buyers may reflect a longer runway needed to achieve these milestones.

The Implications of Older First-Time Buyers

The trend toward older first-time buyers carries significant implications for individuals and society. Delaying homeownership can affect life planning, including family formation and retirement savings. It also places additional pressure on rental markets as people remain tenants for longer.

For policymakers, these trends underline the importance of addressing housing affordability. Measures such as increasing housing supply, offering targeted support for first-time buyers, and exploring innovative ownership models can help ease the transition into homeownership for younger generations.

Source: Dataloft by PriceHubble, English Housing Survey 2023–2024 (released November 2024)

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