The number of first-time buyers fell by 11% in 2022 compared to the year before, dropping to 362,461, according to new analysis from Halifax.

Figures showed the first-time buyer total last year was still higher than pre-pandemic levels, however, with the number getting on the housing ladder in 2022 higher than any previous year, other than in 2006 and a record spike in 2021.

Across the housing market in 2021, the “race for space”, pent-up demand from the pandemic as well as government measures to ease stamp duty costs had led to a record number of first-time buyers getting onto the property ladder for the first time.

In 2022, the average cost of a home for a first-time buyer climbed by 13%, to £302,010, with average deposits now 21% of purchase price. In cash terms, this means an average £62,470 deposit is being raised by those buying their first home – up 8% on 2021.

Despite these significant sums, Halifax’s data indicated that first-time buyers now account for over half (52%) of all loans on homes – the highest in the last decade.

“Today, getting your own place for the first time will likely mean paying over £300,000 for that new home, and putting down, on average, a £62,000 deposit,” said mortgages director at Halifax, Kim Kinnaird.

“The overall level of first-time buyers remains high, with the total number securing a home in 2022 higher than in any year other than 2021 – where we saw record demand-and prior to that, the peak seen in 2006.”

According to the Halifax analysis, first-time buyers are now 32 years-old, on average – and 30 or older in all nations and regions. The findings also revealed that more than two in five (63%) of mortgage completions are now in joint names, with two or more people.

With average property values for first-time buyers now around 7.6 times the average UK salary, Halifax suggested it is “no surprise” that new buyers are increasingly applying for mortgages in joint names rather than by themselves.

“Buyers looking to make their first step onto the property ladder may welcome the forecasted fall in house prices this year – providing the supply is there,” Kinnaird added. “Nonetheless, the cost of purchasing a home is still significant and saving for a deposit can be challenging for some first-time buyers.

“The length of time needed, and cost of, raising a deposit are likely having an impact on the profile of the average first-time buyer over time. Today, those starting out on the housing ladder are 32 years old, on average -two years older than a decade ago – and almost two thirds of people are now getting their first mortgage in joint names.”

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