While London’s first-time buyers are getting older on average, a 20-year high of more than 181,000 first-time buyers (FTBs) secured footing on the housing ladder last year – marking a 24% annual increase.
Benham and Reeves analysed the latest Government figures on first-time buyer market activity, looking at how the number has changed over the past few years.
The average age of a first-time buyer in London was found to be 35.3 years old (2022-23), up from 33.8 the previous year and 32 two decades ago (2003-04).
Despite London remaining the most expensive area of the UK property market, and with the addition of higher mortgage rates, 181,000 first-time buyers climbed the London property ladder in 2022-23.
This marked a notable 24% increase on the previous year, and was the highest level of first-time buyer market activity seen across the capital in the last two decades.
As a result, London’s first-time buyers accounted for 21% of total FTB market activity seen throughout the year – the largest proportion seen since 2014-15 and fourth largest in the last 20 years.
In contrast, the number outside of London fell by 1.8% on an annual basis, marking a second yearly drop, with the 693,000 who did get a foot on the ladder also being the lowest total since the pre-pandemic market in 2019.
Marc von Grundherr, director of Benham and Reeves, said: “It’s quite remarkable that despite London boasting the highest house prices in the land, and with the additional complications of higher mortgage rates, the level of first-time buyer activity seen of late has increased drastically.
“This has no doubt been helped by the fact that London property values have cooled, presenting a great opportunity for those looking to climb the ladder.
“But it also demonstrates the desirability of London amongst buyers and it is this desirability that makes it one of the most resilient property markets on a global scale.
“So while we may now see a great deal of political pandering to first-time buyers in the lead up to the election, the outcome is unlikely to influence the momentum that has been building across the London market when it comes to those making their first bricks and mortar purchase.”
