Why is it harder for first-time buyers to buy in 2025?

For first-time buyers in 2025, the property market is in stark contrast to when previous generations bought their first homes.

The average first-time buyer in 1960 paid a deposit of just £595 (roughly £12,738 today) compared to an average of £53,424 in 2024.

A recent report by Skipton found that just one in eight potential first-time buyers can buy a home in their local area, and of this same group, 80% have insufficient deposit savings to get onto the property ladder where they live.

What are the barriers to homeownership?

As house prices have risen and risen, wages have failed to keep pace. In addition, the last few years have seen the UK hit with economic turmoil as a result of Brexit and the Covid-19 pandemic, meaning recovery has been slow. Households have had to withstand extremely high interest rates and inflation which has led to goods and services costing much more than usual.

As a consequence, many potential first-time buyers are unable to save sufficiently for a deposit because, according to Skipton’s report, around four in ten renters spend 45% or more of their income on essential housing costs, which further compounds their ability to save up for a deposit.

High house prices, job instability, and a cost-of-living crisis have therefore contributed to a vicious cycle whereby those who are renting are unable to realise the dream of home ownership because almost all of their income is spent on just getting by.

What help is available to would-be first-time buyers today?

Happily, there are a number of government-backed schemes such as the Lifetime ISA, First Homes Scheme, shared ownership and products from specialist lenders that are aimed at alleviating some of the burden of buying a first home.

Whatever your circumstances in the lead up to buying your first property, an important step you can take is speaking to a trusted mortgage adviser.

A mortgage adviser can help you to understand your level of affordability, and the various different products that may be available for you.

This is not a one size fits all process, and a mortgage adviser will be able to the right steps to take including identifying the right lender and product for your individual situation, as well as discussing with you how to bring down the overall cost of your move.

To book your appointment with a mortgage adviser, please call Kelly on 07976 279076 or email kellywilliams@ccfpm.biz

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Approved by The Openwork Partnership on 13/03/25.