Most home purchases made by first-time buyers in 2018, research shows

The majority of home purchases were made by first-time buyers last year for the first time in 23 years, according to new research.

The number of first-time buyers reached 372,000 in 2018, the latest Halifax First-Time Buyer review shows, and now account for more than 50 per cent of all house purchases with a mortgage.

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It is the seventh consecutive year that the number of homeowners taking the first steps on to the property ladder has increased, although growth in 2018 was only two per cent compared to 7.6 per cent the previous year.

Overall, the number of first-time buyers has increased by 92 per cent from an all-time low of 192,300 in 2008.

The average first home has increased in price by 39 per cent in the last ten years, from £153,030 in 2008 to £212,473 in 2018, while the average deposit has soared 57 per cent to £33,252 in the same period.

First-time buyers in London are saving £110,656 for a deposit, while buyers in Wales pay the lowest deposit at £16,449.

Of the top ten least affordable areas for prospective homeowners, nine are in London, with Brent, Hackney and Newham the most expensive local authority areas for first-time buyers.

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Halifax managing director Russell Galley said: “New buyers coming on to the ladder are vital for the overall wellbeing of the UK housing market, and the continued growth in the first-time buyers shows healthy movement in this important area – despite a shortage of homes and the ongoing challenge of raising a deposit.

“Last year was the first year that first-time buyers accounted for the majority of the market since 1995, which shows that the factors reducing some of the associated costs -such as continued low mortgage rates and Stamp Duty – are supporting the increasing number of people taking their first step on to the property ladder.”