Almost two-thirds (63%) of mortgage completions are now conducted by joint first-time buyers, Halifax has found.

Analysis by the lender found that first-time buyers were putting down an average deposit of £53,414 last year, an increase of £21,000 (67%) compared to over a decade ago.

Halifax said that although the average salary has increased increased by 30% in this period, getting a deposit large enough for a first home means raising more than a year’s average pay, leading to more first-time buyers combining their funds to purchase a property.

Those buying a property for the first time continued to be the majority (53%) of all home loans last year. It was also the highest proportion, since 1995, of all home purchases with a mortgage.

However, the overall number of first-time buyers fell by 21% year-on-year in 2023, to 293,339.

Currently, the average first-time buyer is now over 30 years old in all regions and nations, with the UK average sitting at 32 years old.

Halifax found that flats have increased in popularity as a starter home compared to a decade ago, increasing by six percentage points, signalling that flats may be a more accessible property type for new buyers and a lower relative price point.

This compares to the number of first-time buyers choosing a terraced home, which has dropped by seven percentage points in the last decade.

Director at Halifax Mortgages, Kim Kinnaird, said: "Following a record year in 2021, unsurprisingly in view of the wider economic environment, the number of first-time buyers joining the property market fell again in 2023 to around 293,000. Despite this drop, new buyers made up over half of all home loans. However, to get a foot on the ladder most people are now buying for the first time in joint names.

"There are a number of schemes available to support first-time buyers, like the mortgage guarantee scheme, which allows us to offer up to 95% mortgages to first-time buyers and has been extended until June 2025. Alternatively, the First Homes scheme offers discounts on new-build homes to first-time buyers, while shared ownership options allow new buyers to purchase some of the property and rent the rest.

"The overall fall in house prices we saw in 2023 will go some way to helping people get on the ladder for the first time – but these buyers are still dependent on a steady supply of properties in their price range, while they are faced with the continued pressure of saving for a deposit, when rent and living costs are high."

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