UK first-time buyer statistics 2023

According to the latest UK first-time buyer statistics, there were approximately 852,000 recent first-time buyer mortgages in 2021-22. This represents a decline of around 100,000 from the previous year.

Our research collates the most recent first-time buyer statistics for 2023, as well as our own unique data, to include information on the average value of first-time buyers’ homes, average deposits paid, and demographic breakdowns such as age, region, and salary. By analysing past and present trends, we have outlined how the market has evolved, and suggest what the future has in store for first-time buyers in the UK.

An overview of UK first-time buyer statistics in 2023

• In 2021-22, there were 852,000 recent first-time buyers in England (around 100,000 fewer than in 2020-21). 

• As of 2021-22, the average age for a first-time buyer in England was 34.  

• In the same year, almost two in five (38%) first-time buyers were couples without dependents, with less than a third (29%) as one-person households.  

• During 2021-22, the mean average deposit for first-time buyers in England was £43,693 (with a median of £30,000). 

• Just under two-thirds (63%) of first-time buyers in 2021-22 were in the top two income quintiles (income quintiles are five equally sized groups divided by earnings). 

• As of 2021-22, nearly all (98% of) UK first-time buyers had a repayment mortgage, with more than half (56%) having a period of 30 years. 

• More than two-thirds (68%) of first-time buyers in 2021-22 paid a deposit of less than 20% of the purchase price, with just 5% buying their first home outright. 

• In the same year, 85% of UK first-time buyers funded their purchase with savings, alongside more than a quarter (27%) who had help from friends or family. 

UK first-time buyer market statistics 2023

The latest UK first-time buyer statistics show a general upward trend throughout the last decade. As of 2021-22, there were 852,000 first-time buyers in England alone. This, however, represented a significant drop from the peak of 957,000 a year earlier (11%).  

Despite the recent decline, the overall numbers for 2021-22 represent a rise of 17% from the three previous years and an increase of 27% over the last five years.

What is a recent first-time buyer?

A recent first-time buyer is defined as anyone who has bought a house for the first time in the last three years, and has not previously owned a property in the UK.

The total number of UK first-time buyers by year

A breakdown of the total number of recent first-time buyers in England by year

The recent decline in first-time buyers was less pronounced in London than in other parts of the UK. Though the capital’s latest figures represented a decline of around 6% from its peak of 155,000 in 2020-21, this is substantially less than the rest of the country which saw figures fall from 803,000 to 706,000 (-12%) in 2021-22. 

London also experienced a substantially higher five-year increase in recent first-time buyers compared to the rest of the UK, with a rise from 106,000 to 142,000 (+36%) between 2016-17 and 2021-22. 

UK first-time buyer statistics by age 

The latest first-time buyers statistics show that people aged between 25-34 make up the largest portion of the market. With around 438,000 first-time buyers in this age category, 25-34 year olds are responsible for more than half (51%) of first-time home purchases in England. 

Despite this, the overall market percentage for 25-34 year olds has actually fallen from the previous year, when it accounted for 62% of the total market (601,000 buyers).

A breakdown of English first-time buyer statistics by age group in 2021-22

Those aged 35-44 are the next most prominent age group for first-time buyers, with total purchases of 255,000 – accounting for 30% of the market. This represents a sharp rise from the previous year, when this age group was responsible for just over a fifth (21%) of overall first-time buyer sales. 

Despite the overall decline in first-time buyers from the previous year, 35-44 year olds were found to have bought 52,000 more homes in 2021-22 than they did in 2020-21. This suggests that this age group may become an even more prominent part of the market in the coming years. 

16-24 year olds recorded the third-highest figures in 2021-22, with their total of 77,000 sales making up 9% of overall purchases. While this age group’s market share has remained largely unchanged, its total purchases saw a decline of around 8,000 from the previous year.

Despite having the lowest volume of first-time buyer purchases, those aged 45 and over now make up nearly 10% of the overall figure – 3% more than in 2020-21.

Which age group makes up the highest percentage of UK first-time homeowners?

                                                     25-34 year olds (51%)

A breakdown of the average age of English first-time buyers by year

First-time buyer statistics show that the average age of a first-time buyer in England has increased over the last year. After a decade of fluctuations between 32 and 33, the average age increased by more than a year between 2021-22. The most recent figure of 33.5 is 1.3 years higher than two years earlier, suggesting rising house prices have affected the age at which many people can afford to buy their first home. 

The age increases are even more pronounced when discounting London. Figures for 2021-22 found that the average age for a first-time buyer outside of London was 34.4. This represents a rise of more than two years from 2020-21, and over 3.5 years since 2019-20.

Contrastingly, the average first-time buyer age in London has been on a downward trend in recent years. Following a decade-high average age of 36.7 in 2018-19, the average age fell to 33.8 in 2020-21 and remained unchanged in 2021-22. 

What is the average age to buy a house in the UK as a first-time buyer?

                                                                        34

UK first-time buyer statistics by salary

The latest first-time buyer stats show that those in the lowest income band made up the lowest proportion of first-time buyers in 2021-22, with just 4.5% (39,000) of the overall total found to be in this demographic.

A breakdown of the number of first-time buyers in England by income band 2021-22

(Source: gov.uk)

The quantity of first-time buyers increases with each income band, before peaking at the second-highest band (fourth quintile). With 295,000 first-time buyers, this income band made up nearly a third (32%) of the overall total.

Though the highest income band (fifth quintile) posted lower figures than the previous one (fourth quintile), its total of 239,000 first-time buyers was the second highest overall. 

UK first-time buyer statistics by mortgage type

First-time buyer stats show an almost even split between sole and couple first-time buyers in England. Of the 852,000 first-time buyers in 2021-22, 422,000 homes (49.5%) were in the household reference person’s (HRP) name only, while 401,000 (47.1%) were found to be in the name of both the HRP and their partner. 

A breakdown of the percentage of first-time buyers in England by mortgage type in 2021-22

Browse our mortgage guides for expert advice on a range of topics relating to homeownership.

UK first-time buyer statistics by deposit income source

The latest first-time buyer report shows that the vast majority of first-time buyers (85%) relied on savings as the primary source of their deposits. While the overall figure of 704,000 made savings by far the most common deposit source, this represents a substantial decline from the previous year, when around 855,000 (91%) first-time buyers saved for a deposit

A breakdown of the number of first-time buyers in England by deposit income source in 2021-22

Over a quarter (27%) of first-time buyers received their deposit as a gift or loan from a friend or family member, making this the second most common source of first-time buyer deposits in 2021-22. Despite an overall decline in first-time buyer sales in recent years, the number of people purchasing the home with a gifted deposit increased by around 5,000.

Similarly, the number of people relying on inheritance to fund their deposits increased from 57,000 to 68,000 in the latest figures. 

UK first-time buyer statistics by family type 

Couples with no dependent children are the most common type of first-time buyers in England. With 320,000 first-time buyer sales, this group accounted for more than a third (38%) of the total purchases.

A breakdown of the UK first-time buyer statistics by household type in 2021-22

(Source: gov.uk)

Lone parents with dependent children were the least likely household type among first-time buyers. Accounting for just 3% of the overall figures, the total purchases of lone parents were around 26,000 – 92% less than the most common household type. 

UK first-time buyer statistics by region

Statistics on the average price of a first-time buyer home in each region show contrasting results between London and the rest of the UK. Despite an overall rise of around 3% between 2020-21, there were greater increases across most regions. 

A regional breakdown of the average UK first-time buyer property price in 2020 and 2021

With a rise of around 8%, Wales was the region that saw the biggest increase in the average purchase price for first-time buyers. Every other non-London region saw increases of between 2%-7%, bar the South East which saw a slight reduction.

Conversely, the average first-time buyer price in Greater London fell nearly 3% from £489,000 to £476,000.

While these figures are the most recent available, it’s worth noting that future results are likely to show considerably higher average price rises in the wake of rising house costs and the cost of living crisis. 

What are the most affordable places for first-time buyers to buy their home?

Our exclusive data on affordability for first-time buyers by local authority compared the median house price of each UK local authority against the median salary. Scotland dominated the 10 most affordable places for first-time buyers, with 70% of local authorities based here. 

A breakdown of the most affordable local authorities for first-time buyers based on the median house price vs the median annual income

With a median house price 2.73 times higher than the median salary, East Ayrshire was found to be the most affordable place for first-time buyers in Great Britain. This figure was around 9% lower than Copeland in second, and 89% lower than Kensington and Chelsea, which was found to be the least affordable place for first-time buyers.

 Each of the five most affordable places recorded annual reductions in the disparity between house price and salary between 2020 and 2021, with nobody in the top 10 recording an increase of more than 0.06. Fourth-placed Inverclyde recorded the highest reduction of our top 10 local authorities, with its reduction of 0.1 taking the overall ratio down to 3.23.

The three non-Scottish places in the top 10 were Copeland, Burnley, and Blaenau Gwent, which finished second, eighth, and tenth, respectively. With a house price to salary ratio of 2.99, Copeland was the only place alongside East Ayrshire to record a ratio below three.

A breakdown of the least affordable local authorities for first-time buyers in Great Britain based on the median house price vs the median annual income

London dominates the list of least affordable places for first-time buyers, with nine of the top 10 all based in the capital.

With a median house price nearly 25 times higher than the median salary, Kensington and Chelsea was found to be the least affordable local authority for first-time buyers in Great Britain. The borough’s ratio was more than 20% higher than second-placed Westminster, where the median house price was found to be 19.56 times higher than the median salary.

Mole Valley, based in Surrey, was the only non-London local authority in our top 10, finishing in eighth place with a house price-to-salary ratio of 16.04. Mole Valley was also the local authority in the top 10 that saw its disparity between house price and salary rise the most between 2020 and 2021 (+0.66). Conversely, Islington’s annual increase of 0.28 represented the lowest increase in the top 10.

Which university towns are the most affordable for their students?

Our exclusive first-time buyer statistics found that Scottish universities offered the most affordable conditions for first-time buyers, with the four highest-scoring universities in our study all being based in Scotland. 

With an estimated average graduate salary of around £28,000, and an average city house price of £200,202, Glasgow’s University of Strathclyde was found to be the most financially viable university for first-time buyers. 

A breakdown of the 10 most affordable university cities/towns in Great Britain for first-time buyers based on salary, house price, and employment

(Source: Uswitch via Higher Education Statistics Agency)

With an index score of 8.89 out of 10, the average Strathclyde graduate will need around 7.2 years to save for a deposit if they save 10% of their yearly salary, and 3.6 years if they save 20%. The University of Strathclyde was one of three Glasgow-based universities in the top 10, with Glasgow Caledonian University and The University of Glasgow finishing third and ninth, respectively. 

Aberdeen’s Robert Gordon University received the second-highest score in our study (8.71). Despite having lower average house prices (£187,370 within university city) and shorter deposit savings rates than Strathclyde (6.77 years with 10% of salary savings), Robert Gordon graduates were found to have a lower average salary (£27,668) and were less likely to be in full-time employment (61.5%) than residents of the Glasgow University. 

Aside from Scotland, the highest-scoring English universities were found in Cumbria and the North East, with Carlisle’s University of Cumbria, Newcastle University, and Middlesbrough’s Teesside University finishing fifth, seventh, and eighth respectively. With an average house value of just over £143,000 within the university city and around £165,000 in a student’s non-term time address, Teesside's 10-year deposit saving rate of 5.86 years was the shortest of any university in the study, with The University of Cumbria’s rate of 6.17 years the second-shortest. 

There were no universities from the south of England or Wales in our top 10, with Stoke-on-Trent’s Staffordshire University (sixth place) and Yorkshire’s Sheffield Hallam University (tenth place) being the remaining two English universities on the list. Despite having city house prices more than 12% higher than Glasgow, and 37% higher than Middlesbrough, Sheffield Hallam’s full-time employment rate of 67.5% was the highest of any university in our top 10.

A breakdown of the 10 least affordable university cities/towns in Great Britain for first-time buyers based on salary, house price and employment

(Source: Uswitch via Higher Education Statistics Agency)

Every university in our top 10 least affordable universities for first-time buyers was found to be in the South of England. London’s Roehampton University was found to be the least affordable university thanks to:

• A high average city house price of £672,027 (70% higher than The University of Strathclyde).

• A mean house price of £498,683 in a student's out-of-term address.

• An average graduate salary of £25,535 (12% lower than The University of Strathclyde). 

• A full-time graduate employment rate below 50% (47.6%).

60% of the least affordable universities for first-time buyers were found to be in London, with the capital responsible for the top six least-affordable universities overall. With an average salary of £21,789 and a full-time employment rate of less than 45%, it would take the average graduate from the University for the Creative Arts (second-place) nearly 25 years to save a 10% deposit, if they saved 10% of their annual salary.

The least affordable university for first-time buyers outside of London was Bath Spa University, which finished seventh overall. With house prices in the city averaging only 6% less than London and a mean graduate salary of £21,109, it would take the average Bath Spa graduate a total of 29.96 years to save a home deposit if they saved 10% of their annual salary, and just under 15 years if they saved 20%.

The only other non-London universities in the top 10 were Falmouth University and Egham’s Royal Holloway and Bedford New College which finished eighth and tenth, respectively. 

Which university degrees put graduates on the path to homeownership the fastest?

Our exclusive study on graduate first-time buyer affordability by degree type looked at the median average salary of graduates in a range of degree subjects and compared it against the average house price in Great Britain.

A breakdown of the median graduate salary by degree type in Great Britain and the years it would take to save for a deposit on the average UK home

(Source: Uswitch via Higher Education Statistics Agency)

With an average salary of £34,000 (the highest overall), graduates in subjects related to medicine and dentistry will take the least amount of time to save for a home, according to our study. Requiring an average of just 4.25 years to save for a deposit (if they saved 10% of their earnings), the average student’s saving time was four months quicker than veterinary sciences.

The vast majority of the highest-paid degree types were found in science, maths, or IT-based subjects, with each of the top six falling into one of these three categories. Social sciences was the highest-scoring degree type not belonging to one of these three industries, finishing joint-seventh with a median graduate salary of £25,000. On this salary, the average graduate would require 5.77 years to save for a deposit if they saved 10% of their earnings—around 36% longer than graduates in medicine and dentistry.

At the other end of the scale, design, creative, and performance arts graduates were found to have the longest savings period of any industry. With a median graduate salary of just £20,000, these graduates would require an average savings time of 7.22 years—5% more than media, journalism, and communications, and around 70% more than medicine and dentistry graduates.

The next least affordable industry for graduate first-time buyers was media, journalism, and communications, which was found to have an average deposit savings period of 6.87 years. 

UK house price statistics

As of December 2022, the average UK property price stood at £294,329—£26,000 higher than 12 months earlier. 

Across the country as a whole: 

• Both England and Wales witnessed an annual increase of 10.3% between 2021-22 in average property prices, at £315,000 and £220,000, respectively. 

• The average Scottish property would set you back £187,000 in December 2022 – 5.7% more than the previous December. 

• Northern Ireland had, on average, the most affordable housing as of December 2022 at £187,000. This was an increase of 10.2% from December 2021. 

The annual price change of UK properties was +9.8% in the 12 months to December 2022, compared with +10.6% in November 2022, and +12% in October 2022. 

On a non-seasonally adjusted basis, the average UK house price dropped by 0.4% between November and December 2022, yet increased 0.3% between November and December 2021. 

Of all UK regions, the East Midlands saw the biggest increase in average house prices in 2022, rising by more than 12% in the 12 months to December 2022. This is contrasted by just +6.7% in London during the same period, and Scotland witnessed the lowest overall growth of all UK regions, at +5.7%. 

A breakdown of UK average property prices by property status and type of buyer

As of October 2022, the average price of a UK new build property stood at almost £397,000. This represented a 1.4% increase on the previous month, and an annual increase of nearly 20%.

By contrast, the average price of an existing resold property was around £288,000 – almost £12,500 less than the cost of the average UK new build mortgage. Existing resold properties saw an increase of 0.2% between September and October 2022, and an 11.4% rise over the previous 12 months. 

In December 2022, the average price of a first-time buyer property in the UK was almost £246,000. This represented a drop of 0.3% on November 2022 prices, yet a 10% increase over the year. Conversely, the average price of a former owner occupied property was almost £100,000 more by comparison, at almost £344,000. This represented a fall of 0.6% from November 2022 figures, and a 9.6% increase from December 2021. 

A breakdown of UK first-time buyer statistics by household type

According to first-time buyer statistics, more than one in three (35%) of all UK properties sold between 2020-21 were to first-time buyers, equating to almost 5.5 million sales. 

The majority of UK property sales to first-time buyers were to single-person households, at just under two million. This means almost two in five (38%) of all properties sold between 2020-21 were to single first-time buyers, and more than one in three (36%) of all first-time buyers.

The next most popular type of first-time buyer to purchase a property in 2020-21 was couples with no dependent children. Around 1.7 million were sold that year to this demographic, representing almost one in three (30%) of all properties sold to couples with no children in 2020-21, and a third (33%) of all first-time buyers. 

Just over 1.2 million properties were sold to first-time buyers consisting of couples with dependent children. However, the least popular property sales for first-time buyers were to lone parents with a dependent (178,000), and other multi-person households (282,000). 

UK housing purchase affordability statistics 

In the financial year ending 31 March 2021, the average home sold in England cost the equivalent of 8.7 times the average annual disposable household income. The corresponding figures for Wales and Scotland were 6.0 and 5.5, respectively.

Although purchase affordability ratios for the average home are below their peaks of 2007 in Wales and 2008 in Scotland, affordability ratios in England are worse than at any point since records began in 1999.

Across all English regions in 2021, an average-priced home in the UK’s most affordable region (the North East) cost the equivalent of almost 12 years worth of income for a low-income household (i.e. those located in the 10th percentile), compared with 40 years in London.

UK house price statistics by region 2022

As of December 2022, the average house price in England stood at just over £315,000, making it the most expensive UK nation to purchase a property for that year. Despite a 0.2% drop from the previous month, the annual change to house prices in England was up more than 10% compared to December 2021.

A breakdown of average UK house price statistics by region 2022

By contrast, Northern Ireland had the most affordable houses, on average, in December 2022, with a typical property costing around £175,000 – nearly £140,000 less compared to England. 

Scottish house prices dropped 2.9% between November and December 2022, to around £187,000 for the average property. Over the last year, house prices in Scotland have risen 5.7% – the smallest percentage rise across the UK. 

House price statistics by region show the North East had the most affordable houses, on average, in December 2022. A typical property would set you back almost £164,000 – more than three times cheaper than the most expensive region, London, at around £545,000. 

Incidentally, London has seen the smallest growth in property prices across all English regions between 2021-22, with the average house costing 6.7% more than in 2021. 

Outside of Scotland, the South West saw the largest monthly decrease in average house prices. A 1.8% drop between November and December 2022 means that, at the end of 2022, a typical property in the South West would set you back over £330,000. 

A breakdown of annual changes to UK house prices 2021-22 

Between 2021-22, the annual price changes to UK house prices experienced a high degree of fluctuation. All four nations registered positive growth in average property prices during this period, ranging from almost 6% in Northern Ireland to more than 16% in Wales. 

As of December 2022, the UK’s annual change to house prices stood at +9.78%, following three months of decline from 12.02% in October 2022. July 2022 saw the highest annual increase in UK property prices over the last two years, at +14.25%.

In the same month, England, Wales, and Northern Ireland also recorded their highest rates of annual change to property prices at +14.88%, +16.24%, and 10.71%, respectively. 

These trends followed a month in which UK figures were at a record-low for 2021-22. In June 2022, the UK annual rate for house prices almost halved from its May 2022 figures, to +6.87%. Consequently, England also saw a significant drop in its respective rate to +6.28% – its lowest across the previous two years. 

A breakdown of average UK house price statistics by type of property 2022

As of December 2022, the average UK property price stood at £294,329. This was a 9.8% increase on the previous year, when the figure was closer to £268,000 (some £26,000 cheaper by comparison). 

Detached houses were the most expensive type of UK property in December 2022, averaging at a little over £463,000. This was a 10.5% increase from 12 months earlier, when the respective figure was almost £419,000. 

Semi-detached properties have seen the biggest percentage increase between 2021-22, at +11.2%. This results in an average cost of more than £286,000 in December 2022, compared to almost £258,000 in December 2021. 

By contrast, flat and maisonettes were the most affordable properties, on average, in December 2022. A typical flat/maisonette would set you back £233,400 at the end of 2022, compared to just over £219,000 just 12 months earlier. This increase of 6.4% was the smallest rise across all property types in 2021-22 (at £14,112). 

UK house price statistics by local authority 2022

Based on UK regional house price statistics, Liverpool was the most affordable local authority in England and Wales as of June 2022, with the average property costing just under £114,000. This represents a decrease of 28% from December 2021, when the average price stood at £158,000. 

A breakdown of house price statistics by most affordable local authority 2022

(Source: ONS)

Wrexham, in Wales, was the second most affordable local authority in the country, with an average house price of £125,000 – a figure that has remained constant since March 2022. However, since December 2021, house prices in Wrexham have fallen by almost 50% (around £95,000). 

Spelthorne is the highest-placed local authority from the south of the UK for house price affordability, with the average property costing just under £138,000. 

UK house price statistics by local authority and property type sold 

In terms of UK house price statistics by property type, Carlisle has the most affordable detached housing, on average, compared to other local authorities in England and Wales. 

A breakdown of UK house price statistics by local authority for most affordable detached houses 2022

(Source: ONS)

As of June 2022, a typical detached house would set you back almost £183,000 – a 26% decrease on December 2021 prices, when the corresponding average stood at just under a quarter of a million. This figure would have resulted in Carlisle not even making the top 10 most affordable local authorities in the country for that month.

Allerdale, also in the North West, was the second most affordable local authority for detached housing in June 2022, with a typical property costing £195,000. 

As of December 2021, Bolsover in the East Midlands held the title as most affordable council to purchase a detached house (£195,498). However, over the resulting six months, detached housing in this area rose by almost 5%, bucking the trend witnessed by the other most affordable local authorities in the country at the time for this type of property. 

A breakdown of UK house price statistics by local authority for most affordable semi-detached houses 20

(Source: ONS)

In terms of UK house price statistics by property type, Plymouth ranks as the cheapest place (on average) to purchase a semi-detached house (£94,500). This figure has remained stable since December 2021, yet most other local authorities in the top 10 have generally seen a decrease in average prices. 

Carmarthenshire, in Wales, has seen the average cost of a semi-detached property fall by virtually £10,000 (-7%) between December 2021 and June 2022, to almost £136,000. 

As the sixth most affordable local authority for semi-detached housing, Liverpool has seen a significant drop in its property prices between December 2021 and June 2022, going from almost £205,000 to £160,000, respectively. This represents a decrease of almost 22% in a six month period, more than any other council in our top 10. 

A breakdown of UK house price statistics by local authority for most affordable terraced houses 2022

(Source: ONS) 

Since December 2021, Doncaster has ranked as the most affordable local authority for terraced house prices in England and Wales. As of June 2022, a typical terraced property would set you back £111,000, almost £14,000 on average compared to the next most affordable areas, Allerdale and Preston (both around £135,000). 

Unlike many other local authorities, Preston saw a 10% increase in the average price of terraced housing between December 2021 and June 2022. Conversely, fifth-placed Bolton witnessed a 30% decrease in the same period, making a typical terraced house £140,000 as of June 2022. 

A breakdown of UK house price statistics by local authority for most affordable flats/maisonettes 2022

(Source: ONS)

In terms of house price statistics for flats/maisonettes in 2022, Lancaster ranks as the most affordable local authority (£92,500), followed by East Lindsay (£94,950). A similar property in East Cambridgeshire, in third position, will cost around £100,000 – a figure that has remained consistent since December 2021. 

At the end of 2021, a typical flat or maisonette in Bradford would have set you back £62,400 – the cheapest across England and Wales at the time. Since then, flats and maisonettes have risen in price to £107,000.  

Whereas most councils in our top 10 have witnessed a drop in the average price of flats and maisonettes, Bradford, and Hinckley and Bosworth, have both experienced the opposite (+71% and +11%, respectively). 

First-time buyer opinion statistics 2023 (exclusive data)

Our exclusive first-time buyer survey found that around two in five (40%) of non-homeowners in the UK do not intend to buy a home within the next five years. Of these, more than half (53%) referenced affordability as the primary reason for not buying a home, with a further quarter (26%) citing the recession.

The number of people intending to buy a home was far higher amongst those aged between 25-34, with only around 25% of respondents in this age group claiming they do not intend to buy a home within the next year.

Almost half (49%) of the people interviewed claimed that house prices would need to fall between 11%-20% before they’d consider buying a home, with a further 13% claiming prices would need to drop more than 20%.

Around 25% of respondents predicted that their budget for buying a home would be £150,000 or less. This figure is almost 50% lower than the October 2022 average UK house price of £295,000. More than half (57%) believed their budget would be no higher than £300,000.

UK first-time buyers deposit statistics 

In the year to December 2022, the average first-time buyer house price increased by 10%, to around £294,000. 

Based on an average rate of saving from an average UK income between July and September 2022, it now takes 18 years for a typical UK first-time buyer to save enough money for a house deposit. This is also assuming a standard, instant-access savings account. If the first-time buyer were to transfer their money to a cash ISA with the same rate, the amount of time required to save would drop to 17 years. 

According to the most recent UK Finance report from December 2019, the mortgage size as a percentage of property value stood at 77% for first-time buyers, nearly 68% for homemovers, and almost 59% for remortgagers. UK Finance suggests a typical deposit for a UK first-time property purchase in 2019 was less than a quarter (23%) of the purchase cost, averaging at just under £54,000. 

As of December 2022, this figure has risen to an average of £56,570, and equates to around 170% of the average UK salary. 

Compare mortgage rates to ensure you get the best deal whether you're a first-time buyer, a homemover, or remortgaging your current home.

A breakdown of the average deposits for UK first-time buyers in 2020 and 2021

Based on UK first-time buyer deposit statistics from 2021, the average amount people paid for a first-time house deposit was £45,624 – down almost £3,000 on average compared to 2020. 

Admittedly, Greater London skews this average somewhat, with an average first-time buyer deposit of £115,759 in 2021 – £15,000 less compared to the previous year. These figures represent around double the average deposit paid by first-time buyers in the South East, the next most expensive region. 

In Scotland, the average first-time buyer deposit in 2021 cost just over £37,000, a figure marginally higher than its 2020 data. Conversely, first-time buyers in Wales parted with an average of £33,622 for their deposits compared to just under £30,000 for those in Northern Ireland. 

First-time buyers in the North East had the smallest average deposit in 2021, at £26,769. 

UK mortgage rates for UK first-time buyers 2023

UK interest rates are set by the Monetary Policy Committee (MPC), which is part of the Bank of England (BoE). Generally, if the economy is slowing down, the MPC may reduce interest rates in order to stimulate growth. However, if inflation is becoming an issue, then the MPC could decide to increase interest rates. 

A breakdown of changes to the BoE Base Rate between 2020 and 2023

As of January 2023, the rate of inflation in the UK stood at 10.8% – 8.8% above the BoE’s target for inflation. Therefore, in order to help counteract this, the BoE made the decision on 2 February 2023 to increase the Base Rate to 4%, followed by another 0.25% in March 2023, further increasing the base rate to 4.25% (the highest it has been since October 2008).

Changes to the BoE Base Rate have an impact on most of the interest rates offered by UK mortgage lenders most notably tracker rate mortgages, which follow it directly.

At the end of November 2022, the average UK mortgage interest rate stood at 2.39%, meaning households would pay an average of £3,540 in interest per year. For new loans, the average rate was 3.36%, resulting in UK first-time buyers paying an average of £6,348 in yearly interest repayments.

In the current climate for first-time buyers, it’s worth consulting a mortgage broker, who can compare deals on different types of mortgages, and find the best mortgage rates on the market for you.  

Find out the latest UK mortgage statistics in a range of key sectors including remortgaging statistics and buy-to-let stats. 

UK stamp duty statistics for first-time buyers 2023

First-time buyer stamp duty land tax (SDLT) relief was first announced and implemented in the 2017 Autumn Budget. 

From 2018 to 2020, over £1 billion was spent in SDLT tax relief for first-time buyers, saving money for some 441,700 claimants. 

Between July 2020 and September 2021, the UK Government announced a SDLT holiday as part of relief efforts to cope with the economic impacts of the Covid-19 pandemic. This helped cause a large fall in claimant numbers during 2020-21 (94,000), and partial rebound for 2021-22 onward (132,800). 

On the 23rd September 2022, the government increased the nil-rate threshold on SDLT for first-time buyers from £300,000 to £425,000. This means that first-time buyers won't pay stamp duty on the first £425,000, so long as the overall property value is less than £625,000. This is likely to result in an increase in the number of claimants for SDLT relief.

A breakdown of the Stamp Duty Land Tax (SDTL) tax relief for first-time buyers by year

(Source: gov.uk) 

HMRC annual stamp tax figures published in January 2023 show that almost four in five (79%) of SDLT relief claimants in 2021-22 were first-time buyers in their 20s and 30s. This is a slight reduction from 2018-19, when the respective figure was 82%. 

During 2021-22, less than half (45%) of first-time buyers in the £125,000-£300,000 price band were in their 20s, and over a third (35%) were in their 30s. Conversely, in the £300,000-£500,000 price band (where a 5% reduced rate is paid on anything over £300,000), less than half (44%) of users were in their 30s, and under a third (32%) in their 20s. 

More than three-quarters of property transactions eligible for SDLT relief are in the £125,000-£300,000 price band. However, more relief is paid out on more expensive purchases. Although a larger volume of people in their 20s benefit from the relief, older users may benefit more in terms of monetary savings. 

A breakdown of the total relief from SDLT for first-time buyers on residential property purchases for £500,000 or less (£625,000 or less from 23 September 202

According to UK stamp duty statistics, there has been a gradual rise in the forecasted cost of SDLT relief since its inception in 2017, when figures stood at £125 million. As of 2022-23, forecasted costs for SDLT relief were more than five-times greater than 2017, at £670 million. 

From 23 September 2022, SDLT relief for first-time buyers was awarded to those wishing to purchase a property for £625,000 or less, providing the purchaser intends to occupy the property as their main residency.  

Between 1 July 2021 and 30 September 2021, there was no tax payable on the first £250,000 of the purchase price, so relief claims during this period would have been limited. The cost relief in 2020-21 and 2021-22 is therefore much lower (£420 million) than the original forecast. 

For 2022-23, the estimated cost for SDLT relief is set to be £345 million – almost 50% less compared to the forecasted figure – yet the same amount as 2021-22 estimated costs. 

The revised higher threshold for tax relief (no tax is payable on the first £425,000 of the purchase price) was introduced on 23 September 2022, and has resulted in a rise in the forecasted value for 2022-23. 

A breakdown of UK stamp duty statistics by net stamp duty tax receipts on properties 2018-22

As of 2021-22, there were 14,100 properties claiming SDLT tax relief – 1,110 (8%) of which were to those with new leases. This represents double the amount for 2020-21, when the respective figure stood at just 610. That said, the total number of properties which claimed SDLT tax relief that year were also at a low of 8,670, therefore, as a percentage, figures remained about the same (7%) for properties with new leases. 

A regional breakdown of the Stamp Duty Land Tax (SDLT) statistics for residential properties in 2022.

(Source: gov.uk) 

In 2022, there were over 1.2 million residential transactions across the UK totalling almost £416.5 million. Of these, around 2.5% (10.1 million) claimed SDLT relief, the overwhelming majority (99%) of which were located in England.  

Almost four million properties in 2022 claiming SDLT relief (38%) were situated in London, followed by more than a fifth (22%) in the South East (constituting almost 2.3 million properties). 

At the other end of the scale, just 65,000 properties in Northern Ireland claimed SDLT tax relief in 2022, making up just 0.6% of all UK properties that claimed for the year. 

Mortgage guarantee scheme facts and statistics

The mortgage guarantee scheme (MGS) is a UK Government initiative intended to encourage lenders to offer more 95% mortgages, helping first-time buyers with only 5% deposit to get onto the property ladder.

The government provides lenders the option to purchase a guarantee on their customer's purchases providing the home cost no more than £600,000, which will compensate them for a portion of the net losses suffered in the event of repossession. The guarantee will apply down to 80 per cent of the purchase value of the guaranteed property.

On 20 December 2022, the UK Government announced that the scheme has been extended until the end of 2023, in a bid to help support more people with a 5% deposit to get onto the UK property ladder. 

By the end of 2022, the MGS has supported 24,000 households to buy a property, with an overwhelming majority (85%) being first-time buyers. 

UK mortgage lenders can choose whether to opt into the scheme or not. On 22 December 2022, Natwest announced plans to withdraw, and has instead launched two, new 95% loan-to-value (LTV) products of equivalent value. This includes a two-year, fixed-rate mortgage with 6.4% interest, and a five-year fixed mortgage at 5.8% interest. Both come with no product fee and £750 cashback as an incentive.     

As of 19 December 2022, there were 130 mortgage products available on the market offering 95% LTV, compared to 274 at the start of September – a 52% decrease in just four months. Corresponding figures for 2021 show an even bigger reduction, from 353 available products on 1 December for 95% LTV mortgages. This indicates a 63% decrease in the availability of these products over the last 12 months.                                      

UK first-time buyer home ownership schemes

There are many accounts and schemes available, offering various benefits and incentives for prospective first-time buyers. Some of the main accounts and schemes currently available are:

Help to Buy

Help to Buy was designed to help prospective first-time buyers with a low deposit to get onto the property ladder. The scheme is closed to most of the UK and can now only be used in Wales, after recently being extended for new applicants until 2025.

Help to Buy equity loans can be used by first-time buyers to fund a property purchase of up to £250,000. Under the scheme, the government provide an equity loan to first-time buyers, to top up their deposit to 25%, enabling them to access 75% LTV mortgages.

Borrowers must contribute at least the first 5% themselves, and the government provide the up to 20% of the deposit requirement as an equity loan. This amount is interest-free for five years and will be repayable based on the cost of the property at the time. This means that if your property value rises, you will owe more money than you borrowed.

Lifetime ISA (LISA

The Lifetime Individual Savings Account (LISA) was launched in April 2017 as an intended long-term replacement for the Help to Buy ISA. 

LISAs offer a 25% government bonus on savings up to a limit of £4,000 per year (meaning the maximum bonus is £1,000 per year). LISAs can be used to purchase a property worth up to £450,000 anywhere in the UK.

Unlike Help to Buy, this account is not exclusive to first-time buyers as it can also be used to fund your retirement.  However, it is only available to those aged 40 or younger. Those savers who withdraw money for a purpose other than buying their first home or retirement may face penalties of up to 25% on their savings. 

First Homes Scheme

The First Homes Scheme is a Government initiative that gives eligible first-time buyers the ability to purchase certain homes for between 30%-50% less than their market value.

To be eligible, buyers must get a mortgage of at least half the price of the home they are trying to buy, and must have a total household income of no more than £80,000 (£90,000 in London).

Shared Ownership Scheme

The Shared Ownership Scheme gives first-time buyers, and those that cannot afford to buy a home suited to their needs, the ability to purchase a share in a new build property. The purchaser takes out a mortgage on their desired share of the property (10-75% initially) while paying a subsidised rent to a housing association on the remaining share. 

Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is typically lower on a shared ownership mortgage than on a standard mortgage.

Buyers using this scheme can usually increase their share of the property over time, as and when they can afford to.  

Right-to-Buy

The Right-to-Buy Scheme is a 40-year-old incentive that allows eligible, council house tenants to buy their home at a discounted rate. The scheme has been abolished in recent years in Scotland and Wales, but remains available in England and Northern Ireland. 

Right-to-Acquire

The Right-to-Acquire Scheme is a government initiative similar to the Right-to-Buy scheme, but is offered by certain housing associations, rather than local authorities.

The discounts offered for Right-to-Acquire tenants tend to be lower than Right-to-Buy, and are offered at a flat rate that does not vary depending on the length of tenancy. 

UK first-time buyer savings intentions

Our exclusive survey found that the First Homes Scheme was the most likely initiative to be used by prospective first-time buyers, with nearly a quarter (24%) claiming they intended to use this scheme to fund their first property purchase.

A breakdown of the percentage of UK first-time buyers planning to use various savings accounts

Interestingly, the number of people planning to use no schemes was nearly double that of the most popular scheme in the study, with around two in five (43%) of people surveyed claiming they intend to fund their first home purchase without government help.

UK first-time buyer savings intentions by salary (exclusive data)

Our study on first-time buyer intentions by salary found that those in the lowest income bracket are the least likely to use savings accounts to fund their home purchase. Around three in five (58%) of respondents earning £15,000 or less claimed they would fund their home without the use of a savings account.

A breakdown of the savings intentions of UK first-time buyers by salary

(Source: Uswitch)

The likelihood of using savings accounts increases as salary rises, before peaking at those earning between £65,000 and £75,000 (75.86%). From here, the numbers drop steeply, with those in the highest income group (over £75,000) almost 9% less likely to use a savings account than those in the next highest group (£65,001-£75,000).

UK first-time buyer savings intentions by region

Our regional data on UK first-time buyer savings intentions showed significant differences across the country. Those in Greater London were the most likely to use savings accounts to fund their home purchase (69%), followed by Northern Ireland (65%) and the East Midlands (60%).

A breakdown of the savings intentions of UK first-time buyers by region

At the other end of the scale, less than half (48%) of respondents in Yorkshire and The Humber intended to use a savings account to purchase their first home, with the South West (49.70%) and Wales (48.99%) both recording similarly low percentages.

UK Help to Buy scheme statistics 2023

The latest UK Help to Buy Scheme statistics found that, between the 1 July and 30 September 2022, over 6,500 properties were bought with an equity loan – down 11% from the same period in 2021.

As of September 2022, more than 375,000 properties have been bought with an equity loan since the scheme opened. Of these, 316,805 (around 84%) were purchased by first-time buyers. The total value of these equity loans to date is £23.7 billion, with the value of the properties sold under the scheme totalling £105.4 billion.

A breakdown of UK Help to Buy property purchase statistics by month, January 2021-September 2022

The latest first-time buyer statistics show a steady decline in Help to Buy property purchases between 2021-22. With just over 4,000 purchases in January 2021, total purchases peaked at over 6,300 just two months later.

From here, the number of purchases fell dramatically, dropping by nearly 50% between March-April 2021, before dropping below 2,000 in July of that year.

After a gradual recovery at the end of 2021, total purchases hit their lowest numbers in January 2022, when just 1,460 people purchased a home via Help to Buy – a decline of over 60% from the same time the previous year.

While the most recent figures of 2,511 for September 2022 represent a 30% increase from the previous month, they remain around 16% lower compared to September 2021.

Help to Buy equity loan scheme statistics

Recent UK Help to Buy scheme statistics show that the changes in minimum deposit from 10% to 5% in 2021 had a dramatic effect on average buyer deposits in England. The most dramatic changes can be found in the North East and East Midlands, where the average deposits have more than halved between Q2 2021 and Q3 2022.

A breakdown of the average buyer deposit on Help to Buy accounts by English region in Q2 2021 (final period of old scheme) and Q3 2022 (most recent figures for current scheme)

Similar reductions can be found throughout the UK, with every region outside of London experiencing average deposit reductions between 20%-45%. In contrast to the rest of the country, London saw their average deposits rise by nearly 2% over this period. 

Which places do Help to Buy equity loans make up the highest percentage of home value?

Our exclusive study on Help to Buy equity loans found that the 10 local authorities in which equity loans accounted for the highest percentage of house value were all London based.

A breakdown of the English local authorities in which Help to Buy equity loans make up the highest percentage of the overall house price

(Source: Uswitch via Department of Levelling Up, Housing and Communities, Stats Wales, and HM Land Registry House Price Index)

With a median loan value of around £161,000, and a median house price of just over £327,000, Newham topped our list with a loan value-to-house price percentage of 49.1%. 

Newham was followed by Greenwich which, despite having a higher median loan value than Newham (£169,212), had a lower loan value-to-house price percentage due to its substantially higher median house price (£354,982).

Despite having more equity loans than any other place in the top 10, Croydon’s overall equity loan value (£421 million) was lower than both Tower Hamlets (£443 million) and Greenwich (£438 million), suggesting people in those areas are saving more on average. 

The highest median loan value in the top 10 was found in Southwark, where the median loan of £184,902 would account for 39.1% of the average property price. Outside of London, eleventh-placed Preston was the highest local authority, with a loan value to house price percentage of 37.1%.

A breakdown of the English local authorities in which Help to Buy loans make up the lowest percentage of the overall house price

(Source: Uswitch via Department of Levelling Up, Housing and Communities, Stats Wales, and HM Land Registry House Price Index )

The vast majority of the 10 local authorities where equity loans accounted for the lowest percentage of house value were based in the south of England, with the East Midlands town of Rutland (joint-third place) being the only exception. 

Elmbridge was found to be the local authority where equity loans made up the lowest percentage of property value. With an average loan value just above £75,000, and a median house price of £565,714, equity loans in Elmbridge accounted for just 13.3% of the average property value. 

Though second-placed Mole Valley had a lower average loan value than Elmbridge, its comparatively low median house price of £460,590 meant that equity loans accounted for slightly more of the average house price (13.5%).

With just 24 equity loans in the entire area, Kensington and Chelsea had the lowest volume of equity loans anywhere in England. Despite a relatively high average loan value of more than £200,000, the London borough’s exceptionally high median house price of around £1.3 million means that these loans only account for 15.9% of the overall property value. 

A breakdown of the Welsh local authorities in which Help to Buy loans make up the highest percentage of the overall house price

(Source: Uswitch via Department of Levelling Up, Housing and Communities, Stats Wales, and HM Land Registry House Price Index )

Our exclusive data on Help to Buy equity loans in Wales found that Blaenau Gwent was the Welsh local authority in which equity loans make up the highest percentage of the overall house price.

With a mean loan value of £37,000 against a median house price of £91,802, the average equity loan in Blaenau Gwent would account for just over 40% of the average house price in the area. This figure is nearly 9% lower than the highest English local authority, Newham, and is lower than the top five English places in total. 

Despite a higher mean loan price, Merthyr Tydfil came second thanks to its substantially higher median house price of £107,628. Both Merthyr Tydfil (35.31%) and third-placed Rhondda Cynon Taf (31.47%) had equity loan value percentages that were lower than the top 10 English local authorities.

A breakdown of the Welsh local authorities in which Help to Buy loans make up the lowest percentage of the overall house price

(Source: Uswitch via Department of Levelling Up, Housing and Communities, Stats Wales, and HM Land Registry House Price Index )

With a mean loan value of £39,000, and a median home value of £228,061, the Vale of Glamorgan’s loan value-to-house price total of 17.1% was the lowest recorded in Wales. This was nearly 4% higher than the lowest score in England, Elmbridge, and matches the joint-tenth highest score in England.

Despite having the joint-highest median loan value of anywhere in Wales, Monmouthshire’s relatively median high house value of £261,081 means that this loan would only account for 17.24% of property values in the area.

Though Pembrokeshire has a considerably lower median house price (£178,762) than both Vale of Glamorgan and Monmouthshire, the south-west county’s mean loan total of £33,000 meant that it still found its equity loan value percentage (18.46%) among the smallest of the local authorities in Wales.

Lifetime (LISA) early withdrawal statistics

The latest first-time buyer statistics show a significant annual increase in people using their LISA account for a house purchase. Between 2019-20 and 2021-22, the total number of house purchase withdrawals increased nearly 300%, from 9,400 to 36,000.

During this time, the total value of withdrawals more than quadrupled, and the average value of withdrawals increased by more than a quarter (27%) to £12,461.

A yearly breakdown of the UK LISA household deposit withdrawal statistics

(Source: gov.uk)

Recent Lifetime ISA statistics show that the number of people making early withdrawals from their accounts has accelerated rapidly in recent years. The biggest increase was between 2019-20 and 2020-21 when the figure almost tripled, from 17,850 to 51,550 at the height of the Covid-19 pandemic.

The most recent figures show another sharp rise of around 50% in total unauthorised withdrawals between 2020-21 and 2021-22. Despite this, the average value of unauthorised withdrawals has decreased by nearly 50% over this period. 

A breakdown of the number of the LISA early withdrawals by year

(Source: gov.uk)

UK Right-to-Buy statistics 

The latest Right-to-Buy statistics found that the number of Right-to-Buy sales increased by around 52% between 2020-21 and 2021-22. Despite this, the figures remain nearly 10% lower than they were in 2019-20, suggesting that the Covid-19 pandemic was likely a contributing factor to the comparatively low numbers for 2020-21.

In 2016-17, the total number of buyers reached a high of 18,100, meaning overall figures have declined by around a quarter (23%) in the following five years.

UK Right-to-Acquire statistics 

The latest Right-to-Acquire statistics reported an annual rise of around 80% in purchased properties funded by the scheme between 2020-21 and 2021-22. Despite this, figures remain around 33% lower than their decade peak in 2018-19, when 2,080 homes were purchased under the scheme. 

A breakdown of the Right-to-Acquire sales statistics in England by year

UK shared home ownership statistics

Recent first-time buyer statistics show a steady increase in the number of people using the Shared Home Ownership Scheme to fund house purchases. After a rise of over 50% between 2017-18 and 2018-19, total purchases rose a further 7% the following year.

After dropping below 17,000 in 2021-21, the number of purchases increased by around 14% in 2021-22 to 19,386—the highest annual total since the scheme opened.

A breakdown of the Shared Home Ownership purchase statistics by year

UK new build statistics 2023

Recent UK new build statistics show that the highest volume of new detached homes built was found in towns and cities. With 3,204 detached homes built in Q2 2022, towns and cities nearly doubled the number of new detached homes in town and fringe areas for that quarter.

A breakdown of UK new build statistics by rurality and property type

There was a fairly even split of detached homes built between rural and urban areas, with the slight majority (around 55%) of the 7,224 homes built in urban areas for Q2 2022. 

A breakdown of the number of detached homes built by area type in Q2 2022

(Source: ONS)

The latest new build statistics show there were far more terraced houses built in major urban conurbations than anywhere else in Q2 2022. With 4,024 terraced homes built in major conurbations, this type of area was responsible for more than double the number of new build terraced properties in all other types of setting. 

Terraced houses had by far the biggest disparity between rural and urban areas of all property types, with around 94% of the 6,234 terraced homes built found in urban locations in Q2 2022. By contrast, of the 4,201 semi-detached homes built in this quarter, around 63% (2,665) were built in urban areas. In this instance, urban newbuilds outnumber rural newbuilds by more than 1,100. 

The highest volume of semi-detached homes built in Q2 2022 were found in towns and cities. With a total of 2,031 semi-detached houses for this quarter, towns and cities saw nearly three times more homes of this type built than the next most popular area type (Rural: Town and Fringe).

New build statistics for flats and maisonettes found just 1,760 were constructed in Q2 2022 – the lowest of all four property types. As a percentage, there were around 75% fewer flats and maisonettes built compared to detached houses for that quarter. 

Of the flats and maisonettes built, more than half (920) were found in towns and cities, with a further 15% found in major urban conurbations. Overall, for flat and maisonette construction in Q2 2022, the split between urban and rural areas was around 70% and 30%, respectively.

UK new build company customer satisfaction statistics 

The latest first-time buyer customer satisfaction statistics found high scores for the vast majority of construction companies. The best score was recorded by CALA homes with a customer satisfaction rating of 95.2% from the 1,417 homeowners sampled. CALA Homes were followed by Barratt Developments and Bellway Home, which both recorded customer satisfaction rates of 93.3%.

A breakdown of the customer satisfaction of homeowners by construction company used

(Source: Home Builders Federation)

Of the 13 companies in the study, only three received customer satisfaction scores below 90%, with Keepmoat, Cater Nicholson, and Avant Homes recording scores of 89.9%, 89%, and 85%, respectively. 

UK first-time buyer statistics compared to other countries

The latest European first-time buyer report found England to be among the lowest countries on the continent for the amount of newly built homes per capita in 2021. With an average of 2.56 new build homes per 1,000 citizens, England ranked 19th out of the 22 countries included in the study.

England’s figures were around 76% lower than Austria, who topped the list (10.6 new builds per 1,000 people) and nearly 60% lower than the Republic of Ireland in joint-fourth (6.05 new builds per 1,000 citizens).

A breakdown of the UK first-time buyer statistics across Europe 2021