London’s first-time buyer numbers increased to a 20-year high last year as 181,000 buyers secured their first step onto the housing ladder, according to research from Benham and Reeves.

The lettings and estate agent revealed that the figure for 2022/23 also marked a 24% annual increase.

While first-time buyers have become a key topic for discussion in the upcoming General Election for the main parties, the analysis by Benham and Reeves has suggested that London’s first-time buyers don’t need to be incentivised to get a foot on the ladder, with market activity having increased.

The average age of a first-time buyer in London is now 35.3 years old (2022/23), up from 33.8 years old the previous year, and 32 years old two decades ago (2003/04).

Despite London remaining the most expensive area of the UK property market, and with the addition of higher mortgage rates, 181,000 first-time buyers climbed the London property ladder in 2022/23 – the highest level of first-time buyer market activity seen across the capital in the last two decades.

As a result, London’s first-time buyers accounted for 21% of total first-time buyer market activity seen throughout last year – the largest proportion since 2014/15 and fourth largest in the last 20 years.

By contrast, the number of first-time buyers outside of London declined -1.8% on an annual basis, marking a second yearly drop, with the 693,000 who did get a foot on the ladder also being the lowest total since the pre-pandemic market in 2018/19.

“It’s quite remarkable that despite London boasting the highest house prices in the land, and with the additional complications of higher mortgage rates, the level of first-time buyer activity seen of late has increased drastically,” commented Benham and Reeves director, Marc von Grundherr.

“This has no doubt been helped by the fact that London property values have cooled, presenting a great opportunity for those looking to climb the ladder. But it also demonstrates the desirability of London amongst buyers and it is this desirability that makes it one of the most resilient property markets on a global scale.

“While we may now see a great deal of political pandering to first-time buyers in the lead up to the election, the outcome is unlikely to influence the momentum that has been building across the London market when it comes to those making their first bricks and mortar purchase.”

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