First-time homebuyers making up bigger share of housing market

January 14, 2024 by Heidi

Property Market

Last year saw first-time homebuyers (FTBs) make up a much larger share of the overall UK housing market in comparison to previous years, according to the newest figures issued by Skipton Group.

This group is made up of Hamptons Estate Agents and Skipton Building Society. Its figures for 2023 show that more than one quarter of the entire market was first-time homebuyers – adding up to 28% of it in total. By way of comparison, back in 2015, first-time homebuyers only made up 16% of the market, showing there has been a persistent increase over the last decade.

What makes this all the more striking is that the rising share of the market for those buying for the first time has continued, despite mortgage market turbulence and the Covid-19 crisis.

Aneisha Beveridge, the head of research at Hamptons, told Mortgage Strategy that first-time homebuyers that were able to handle the rises in interest rates last year moved to the head of the queue. She then added that:

“With nothing to sell in what’s been a tough market, those buying their first home are being favoured over offers from anyone with somewhere to sell, often even when their offer is a little lower.”

Beveridge finished by pointing out that the home movers would likely increase their share of the market again this year, as rates start going down once more.

Mortgage advisors can use their CeMAP course training to help first-time buyers who are realistic about their budgets to find properties and loans that are affordable.