The number of first-time buyers (FTBs) aged 50 and over has increased by 30% in the last five years, making it one of the fast-growing segments of the FTB market, Tembo has found.

Analysis of the Financial Conduct Authority’s product sales data indicated that the number of younger FTBs, particularly those under the age of 30, is in decline, while the number of older FTBs over the age of 40 has been growing by over 7% every year since 2018.

Since 2018, the overall number of FTBs has grown by around 1% on average each year since 2018, with 360,000 in total in 2022.

As a result of the cost of living crisis, Tembo said that it is taking longer than ever to save sufficient funds for a housing deposit and for FTBs to have sufficient income to afford to buy a home.

The analysis by the digital mortgage platform also found that there was “significant regional variation” in the proportion of FTBs over the age of 50 in the UK.

London has the lowest proportion with just 2.4% of FTBs aged over 50, although it is the fastest growing region, where total FTB purchases increasing by almost a quarter (22%) from 2018, with purchases by over 50s in the same period increased by 64%.

The South West has the highest proportion, with 3.5% of FTBs being over the aged of 50.

Tembo has predicted that, in line with recent growth trends, people over the age of 40 will make up almost a quarter of all FTBs.

Founder and chief executive officer at Tembo, Richard Dana, said: "A perfect storm of factors impacting first time buyer affordability means we’re now seeing a sharp rise in the number of people waiting until they’re aged 50 or over before they buy their first home.

"This is presenting a challenge to both the financial services industry and would-be home buyers, with many traditional high-street lenders not offering extended mortgage loan terms beyond the age of 75."

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