Over-50s first-time buyers on rise as deals that run into retirement fuel trend

27 January 2024 , 22:45

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It's taking longer for many people to get on the property ladder (Image: Surrey Live - Grahame Larter)

More and more people are having to wait until their fifties before buying their first home.

The number of first-time buyers who have passed their half-century rose by 29% between 2018 and 2022. It means some people are signing up for their first mortgages at the same age their parents or grandparents may have finished paying theirs off.

And the official statistics revealed an even bigger rise in numbers taking their first steps on the property ladder in their 40s – while twentysomething house buyers slumped.

The situation is caused by soaring property inflation with separate figures showing prices rocketed all over the country during the same period, in some areas by over a quarter. It means buyers are taking far longer to save a deposit than previous generations, say experts. Mortgage specialist Tembo, which produced the report using Financial Conduct Authority sales data, says the trend is also driven by the growing availability of home loan deals aimed at the middle-aged.

Chief executive Richard Dana said: “A perfect storm of factors impacting first-time buyer affordability means we’re seeing a rise in the number of people waiting until they’re aged 50 or over before they buy their first home. Our average customer has a deposit of £74,000. If a buyer was to save £150 a month in a lifetime Isa account, that would take about 22 years. There are also a growing number of mortgages that run well into retirement, meaning becoming a homeowner with a mortgage in your sixties is now possible.”

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The FCA figures reveal an 8% decline in 18 to 25-year-old first-timers and a 1% drop in those aged 26 to 30. There was a 10% increase among 31 to 35s and a 21% rise in 35 to 40s. The biggest rise in first-time buyers, 36%, was among 40 to 45s, while late forty-somethings making their first home purchase rose 31%.

And all regions saw a boost in over-50s first-timers. London had the biggest at 63%, then Northern Ireland (58%) and the East of England (46%). The South West had the smallest rise at just 5%.

Home at last

Percentage increase in first-time buyers aged over 50 by region between 2018 and 2022 :

London 63%

Northern Ireland 58%

East of England 46%

South East 36%

Yorks and Humber 35%

East Midlands 28%

Wales 23%

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North East 23%

West Midlands 22%

North West 20%

Scotland 7%

South West 5%

David Jarvis