The number of first-time buyers is down 22% between January and August 2023, compared to the same period last year, the Halifax first-time buyer review has found.

Halifax’s report also revealed that first-time buyers account for just over half (53%) of all home loans. This is a similar proportion to the same period last year (52%), although activity in the wider market has slowed down.

The average price for a first home in the UK currently stands at £288,030, down by 2% in the past year. First-time deposits have also fallen by 12% in the same period but are still averaging £54,116.

Director at Halifax Mortgages, Kim Kinnaird, said: “Getting the keys to your first home is a significant milestone in anyone’s life – we’ve lent £5.5bn to first-time buyers in the first six months of the year, helping people make their home-owning dreams a reality.

“While lenders are ready to help people get on the property ladder, the growth in house prices over the past decade means raising a suitable deposit remains a significant hurdle. There is then finding the right property in a housing market with limited supply, coupled with the sharp rise in interest rates more recently, meaning there is lots to consider for any first-time buyer.

“The average age of those buying their first property is now 32, rising by two years over the past decade, most likely reflecting that increasing costs are making the road to home ownership longer. Also, when people are ready to buy a home, most are doing so in joint names which helps both in terms of costs and affordability.”

Scotland is currently the UK’s most affordable region for first-time buyers, with nine out of the 10 most affordable regions across the UK being located in the country.

Currently, average house prices and deposits in Scotland stand at £188,252 and £38,871 respectively.

However, the most expensive area to buy a house is in London, currently standing at an average price of £496,208. The capital has seen a -24% decline in the number of first-time buyers entering the market compared to the same period in 2022.

East Anglia also recorded the same drop in the number of first-time buyers, with the South East seeing the largest decline in first-time buyers year-on-year, falling by a quarter (-25%).

Kinnaird added: “The expected further fall in house prices this year – alongside stronger income growth – may somewhat offset higher interest rates, which will be welcome news to many. Further, there are some areas which continue to be great options for first-time buyers – the average cost of a first property in Scotland, as an example, comes in at almost £100,000 less than the UK average.”

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