First-time buyers accounted for 34.3% of all homes sold across Great Britain in January, the highest proportion recorded since 2006, according to research from Connells Group and Hamptons.
The data indicates a significant shift in market composition, with first-time buyers representing a growing segment of property transactions at a time when existing homeowners are moving less frequently.
Regional variations
In London, the first-time buyer share reached 48.3% of purchases, compared to 22.4% a decade ago, according to the newly-merged research team at Hamptons and parent company Connells.
The research shows that 93% of first-time buyers secured mortgage rates below 5% in January, the highest proportion since autumn 2022 and an increase from 67% in January 2024. Additionally, 24.2% of first-time buyers took out mortgages with loan-to-value ratios of 90% or higher, the largest share since 2008.
Mortgage term trends
The data reveals that fewer first-time buyers are extending their mortgage terms, with the share borrowing over 30 years declining from last year’s peak.
Aneisha Beveridge, Research Director at Connells Group, attributed the increased activity to falling mortgage rates, including the first sub-3.5% deals available in some time. “First-time buyers have been the biggest beneficiaries, particularly where higher loan-to-value products have become more competitively priced,” she said.
Market implications
Beveridge noted that rising first-time buyer numbers could support overall transaction levels in 2025, particularly as existing homeowners move less frequently. She added that the transition of renters into homeownership could potentially ease pressure in the lettings market if the trend continues.
The findings suggest a structural shift in the UK housing market, with first-time buyers playing an increasingly significant role in maintaining transaction volumes amid broader market uncertainty.
