Two-thirds of first-time buyers are purchasing a home with someone else

31 January 2024 , 10:18

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Nearly two-thirds of first-time home buyers are teaming up with someone else to get on the property ladder (Image: PA Archive/PA Images)

Nearly two-thirds of first-time home buyers are teaming up with someone else to get on the property ladder, according to Halifax.

The mortgage lending giant found that 63% of first-time buyer mortgages taken out between January and December 2023 were in joint names. The average property values for first-time buyers are now about 6.7 times the typical UK salary (£43,257), says Halifax.

This analysis was based on data from Lloyds Bank and Bank of Scotland, which are all part of the same banking group. Lloyds Banking Group was the UK's biggest mortgage lender in 2022, lending a whopping £52.7 billion during the year, according to figures from trade association UK Finance.

First-time buyers put down an average deposit of £53,414 last year around £21,000 more than a decade earlier, according to Halifax's analysis. Across the UK, the average first-time buyer house price in 2023 was £288,136, slightly down from £302,008 in 2022.

Terraced homes made up 30% of new mortgages for first-time buyers last year, while flats accounted for 27% and detached homes accounted for 10%. Semi-detached homes made up 29% of first-time buyer properties in 2023, while bungalows accounted for 3%, according to Halifax.

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Flats are now more popular for first-time buyers than they were ten years ago, while fewer are picking terraced houses, says the bank. Halifax also shared that the average age of a first-time buyer is 32, but this can be as young as 27 in some places and up to 37 in others.

Kim Kinnaird from Halifax Mortgages mentioned: "The overall fall in house prices we saw in 2023 will go some way to helping people get on the ladder for the first time but these buyers are still dependent on a steady supply of properties in their price range, while they are faced with the continued pressure of saving for a deposit, when rent and living costs are high."

Scotland has lots of spots where it's easier to buy your first home, according to Halifax. Inverclyde is super affordable, with homes costing about 2.6 times the average wage. But in London, it's much tougher, with some areas needing first-time buyers to save over £100,000 for a deposit. Islington is the toughest spot, where homes cost over 10 times the average salary.

Here are the average first-time buyer house prices, deposits and deposits as a percentage of the purchase price in 2023, according to Halifax:

East Midlands: £235,941, £36,139, 15% East of England: £327,926, £52,682, 16% London: £492,234, £108,848, 22% North East: £174,693, £29,740, 17% Northern Ireland: £174,337, £31,948, 18% North West: £215,655, £35,581, 16% Scotland: £188,670, £39,691, 21% South East: £353,724, £59,075, 17% South West: £273,968, £49,135, 18% Wales: £199,930, £36,350, 18% West Midlands: £236,253, £37,459, 16% Yorkshire and the Humber: £204,178, £33,208, 16%

* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]

Lawrence Matheson