First-time buyers surge but stamp duty changes loom

The number of first-time buyers stepping onto the property ladder has surged, according to Halifax.

Data from Halifax shows that the number of first-time buyers has risen by 19% in 2024 compared to 2023.

The average age of a first-time buyer in 2024 is 33 years old, two years older than it was 10 years ago (31 years old), marking the oldest average age in two decades.

Average cost of a first-time buyer home

According to Halifax, the average cost of a first-time buyer home was £311,034 (up +8% vs 2023), with deposits averaging 20% of the purchase price.

This means a typical new buyer is putting down a deposit of £61,090, around £7,500 (+14%) more than in 2023.

Across the UK, all regions and nations saw growth in the number of buyers getting on the housing ladder. East Anglia and the South West experienced the largest increases, with +22% more first-time buyers than in 2023.

Amanda Bryden, head of mortgages, at Halifax, said: “Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023. This likely reflects an improvement in mortgage affordability, as interest rates eased and stabilised, providing more certainty for those stepping onto the ladder.

“Despite the challenges of saving for a deposit and rising house prices – up 8% in 2024 – it’s encouraging that first-time buyers still account for more than half of all new mortgages, the biggest majority ever recorded.”

The most affordable place to buy a first home in the country is in the North of England, with County Durham topping the list.

Stamp duty rise

However, with the looming change in stamp duty, things won’t get any easier for first-time buyers in the short term.

From April, stamp duty thresholds in England will be lowered. For first-time buyers, the exemption threshold will drop from £425,000 to £300,000, while for standard residential properties, it will fall from £250,000 to £125,000.

Toby Leek, President of the National Association of Estate Agents (NAEA) Propertymark, said: “It’s positive to see that the number of first-time buyers coming to the housing market is on the up, however, from the tail end of 2024, this is likely, in part, due to the Stamp Duty rises commencing in England and Northern Ireland from April.

“What is concerning is the increasing average age and amount of money they need to fork out upfront to make their home move, as this is not feasible for many people.

“In order to get people across the country onto the housing ladder in the long term, we need to start to see more homes of all types and tenures being built to bring down house prices.”