As many as a third of first-time buyers already have children by the time they get on the property ladder, indicating a greater need for families in the private rented sector.
The average age of a first-time buyer in the UK has risen to 34, according to the latest research from Mortgage Advice Bureau, with 43% having to use “additional income” to support their homeownership aspirations.
The research also found that a huge 31% of first-time buyers were getting onto the property ladder with dependents, indicating that family needs are a major priority not only for property purchases, but potentially in the private rented sector.
As the average age that people buy their first home rises, the average demographic of tenants has been changing. More than ever, today’s tenants are working professionals who have higher expectations of their rental homes than the stereotypical graduate tenants of the past, as well as families looking for longer-term accommodation.
First-time buyers saving £24.5k
The average deposit being stumped up by new buyers is £24,500, with the research showing that buyers were actively saving an average of £585 per month to hit their deposit goal. This is with an average first-time buyer annual income of £35,900.
Almost all (97%) of the buyer type is in full-time employment, says Mortgage Advice Bureau. This means that those who live in the private rented sector before buying are highly likely to value proximity to jobs and transport links, in order for them to be able to work to save for their home deposit.
While families are a rising and key demographic to consider, the research also found that almost half (47%) of first-time buyers were buying property alone in 2024.
While the cost of renting a property solo can be restrictively high, there has been a surge in interest for houses in multiple occupation (HMOs) in recent years, which has coincided with quality improvements in this segment of the market. For solo people, an HMO offers cheaper accommodation with shared facilities that can provide a more sociable experience than living alone.
Bright future with high demand
“The first-time buyer market is certainly multifaceted in nature, and our research only goes to underscore that,” said Rachel Geddes, Strategic Lender Relationship Director, Mortgage Advice Bureau. “There’s also no ‘one-size-fits-all’ when it comes to finding the right mortgage.
“However, there’s always more we can be doing, as universal challenges like affordability, regional differences in property prices, and the cost-of-living will always remain.”
Geddes notes that the new average age of new buyers of 34 is “much too high” and requires action from the industry to “step up and do more”.
She continues: “Understanding these trends is crucial for the policymakers, lenders, and service providers who are looking to support this crucial segment of the UK housing market.
“That being said, the future’s looking bright. Demand remains high, and with an increasing number of lenders enhancing their affordability criteria and offering innovative borrowing solutions, there’s never been a better time for aspiring buyers to get on the property ladder.
“With a wealth of opportunities at their fingertips, this is where the expertise of a broker comes into its own, helping customers get mortgage ready with a deal that aligns with their financial and personal goals.”
From a property investment perspective, considering the trends and preferences of the average first-stepper in the property market can be a good indication of what tenants are likely to be looking for – which can help landlords boost the appeal of their properties.
Whether landlords are targeting families, young professionals or groups of individuals, choosing the right property type and marketing it effectively is key to ensuring long-term, successful tenancies.
Get in touch with BuyAssociation today to discuss your property goals and explore our investment opportunities with one of our experienced consultants.
