First-Time Buyer Age Rises to 34 as Market Shifts Dramatically
New data reveals a significant shift in the profile of first-time buyers, with the average age climbing from 29 to 34 since 1994/5. According to the latest Skipton Group Home Affordability Index, only six per cent of first-time buyers are now under 25, a sharp decline from 23 per cent in the mid-1990s.
Changing Demographics and Financial Pressures
The landscape for first-time buyers is evolving in multiple ways. Over the past decade, the proportion of buyers with children has fallen from 34 per cent to 25 per cent. Simultaneously, reliance on multiple incomes has surged, with 52 per cent of recent buyers using two or more full-time salaries, compared to 40 per cent in the 1990s.
Charlotte Harrison, CEO of home financing at Skipton Building Society, commented: "First-time buyers face a market vastly different from previous generations, with further mortgage rate rises adding to affordability pressures. Global conflicts can increase uncertainty, pushing up borrowing costs, making lender innovation crucial to keep homeownership accessible."
Willingness to Compromise Among Aspiring Buyers
Research involving 2,000 aspiring first-time buyers found that 79 per cent are willing to compromise to get onto the property ladder. Outdoor space was the most common trade-off, cited by 21 per cent, while 20 per cent would compromise on proximity to work, property type, or home condition.
Nearly three quarters (72 per cent) would consider moving further afield, with respondents willing to relocate an average of 12 miles from their preferred location. Seven per cent would move over 40 miles away. This flexibility may stem from timing issues, as 52 per cent of aspiring buyers are purchasing later than originally hoped.
Structural Trends and Long-Term Implications
Aneisha Beveridge, research director for Connells Group, noted: "Affordability pressures and demographic changes, such as longer education and delayed life milestones, have pushed the average buyer age higher. House prices outpacing incomes and strong rental growth have made saving harder, reshaping when people can buy."
Analysis indicates that a typical first-time buyer in 2026 will still be paying off their mortgage at around age 65, about six years later than current averages. Longer mortgage terms help manage monthly costs but mean more people will repay into later life.
This data underscores the ongoing challenges in the housing market, highlighting the need for continued support and innovation to assist first-time buyers in navigating these pressures.
