First-time buyers (FTBs) accounted for over 28% of all transactions in the housing market during 2023, according to research from Skipton Group. This figure represents a considerable increase from 16% in 2015, demonstrating the resilience of FTBs amidst various economic challenges.
A poll of 1,000 adults planning to purchase their first home within three years, commissioned by Skipton Group, revealed that 70% are willing to compromise on aspects like garden size, location, and bedroom count.
Of these, 42% would accept a smaller garden, and 37% are open to living farther from preferred locations. Additionally, 67% expect their first home to be smaller than ideal.
Charlotte Harrison, CEO of home financing at Skipton Building Society, notes the shift in buyer expectations: “We’ve seen many first-time buyers become more realistic than optimistic with what they can afford and adjust their property expectations.”
Aneisha Beveridge, head of research at Hamptons, adds, “First-time buyers who have been able to successfully navigate 2023’s higher interest rates have increasingly found themselves at the front of the home-hunting queue. 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.”
The survey, conducted by OnePoll, also indicates that 34% of FTBs expect to own a semi-detached property, with flats (25%) and terraced houses (21%) following. In London, 38% anticipate owning flats, higher than the national average of 26%.
Furthermore, there has been a geographic shift in FTB activity, with more from London and the south compared to fewer in the north of England and Yorkshire in the last 12 months.
In terms of financial support, FTBs in London are more likely to receive help with deposits from parents or guardians (46%) compared to the national average of 35%. The average household income of these buyers has increased by 14%.
