First-time buyer (FTB) market share dropped 10% in 2025 due to affordability pressures, data from reallymoving found.
FTBs made up 63.3% of all homemovers in England and Wales in January, falling to 56.7% in August.
The average price paid by FTBs fell by 3.1% from £280,610 in January to £271,784 in August, but lower prices did not bring more buyers into the market.
FTB share fell in every region in 2025.
The steepest drops were in the South West, Yorkshire and Humber, the East of England and the North East, all down by more than 9 percentage points.
The North East saw average prices for FTBs go up by 9% between January and August and also saw one of the sharpest falls in share.
The smallest changes were in the East Midlands and London.
London had the highest share of first time buyers at 68% of all movers.
High rents and support from family were likely factors.
The average price paid by a FTB in London dropped by more than £12,000 from August 2024 to August 2025.
Additionally, data showed that the proportion of FTBs purchasing flats went from 29.7% in January to 26.6% in August.
New build purchases fell by almost a quarter over the same period, from 12.8% to 9.7%.
Fewer new homes were coming onto the market and new builds often carried a price premium and stricter mortgage rules.
The change to Stamp Duty in March also played a role.
Rob Houghton, founder and CEO at reallymoving, said: “These figures highlight the scale of the challenge facing First Time Buyers in 2025.
“Prices may be softening and mortgage rates inching down, but not nearly enough to offset the affordability pressures being felt in every region of the country.
“First Time Buyers face trying to save for a deposit amid rising living costs and secure a mortgage at a sustainable repayment rate, with very little targeted government support to help them onto the ladder.”
Houghton added: “Unless we start to see a dramatic increase in housebuilding, as has been promised, and targeted measures to boost affordability, First Time Buyers are unlikely to regain their market share any time soon.
“Beyond restricting market mobility, this will undermine the financial security of young people and erode the long-term stability that home ownership can provide.”
