More first-time buyers aged over 50 as house prices soar

Many people are delaying their first home purchase until their 50s or beyond, as house prices have rocketed in recent years, one firm reveals.

Tembo Money, a mortgage specialist, analysed data from the Financial Conduct Authority (FCA) and found that the number of first-time buyers aged 50 or older increased by 29% between 2018 and 2022.

In contrast, the number of young people entering the property market declined, with an 8% fall in 18 to 25-year-olds and a 1% fall in 26 to 30-year-olds.

The only age groups that saw an increase in first-time buyers were those over 31, with the biggest jumps in 35 to 40-year-olds (21%) and 46 to 50-year-olds (31%).

‘Storm of factors impacting first-time-buyer affordability

Richard Dana, the chief executive of Tembo, told MailOnline: “A perfect storm of factors impacting first-time-buyer affordability means we’re now seeing a sharp rise in the number of people waiting until they’re aged 50 or above before they buy their first home.

“This is presenting a challenge to both the financial services industry and would-be homebuyers, with many traditional high street lenders not offering extended mortgage loan terms beyond the age of 75.”

Region with the highest growth in first-time buyers

London was the region with the highest growth in first-time buyers over 50, with a 63% increase over the five-year period.

It was followed by Northern Ireland (58%), the East of England (46%), and the South East (36%).

Tembo points to a combination of factors for the trend, such as longer deposit saving times, rising house prices and more mortgage options later in life.

Mr Dana added: “Our average customer has a deposit of £74,000, and if a buyer was to save £150 a month in a lifetime Isa savings account that would take about 22 years.

“There is also a growing number of mortgages that run well into retirement, meaning becoming a homeowner with a mortgage in your 60s is now entirely possible.”