02 April 2024 , 11:22
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First-time buyers have been behind around a third (33%) of home purchases across Britain so far this year, estimates suggest.
This is up from 29% in 2023, property firm Hamptons said. The data was gathered from an analysis by estate agency network Countrywide, which Hamptons is part of.
There's also evidence that first-time buyers are opting for smaller homes as high mortgage rates put pressure on their budgets. For the first time since 2011, over half (51%) of first-time buyers bought a home with one or two bedrooms.
In 2023, 49% bought two-bed homes or smaller, while most new homeowners bought a larger home. Mortgage rates have risen due to Bank of England base rate increases. However, recent decreases in inflation have raised hopes of a rate cut.
Aneisha Beveridge, head of research at Hamptons, said: "The pickup in first-time buyers this year is in part, making up for the lost moves in 2023." Last week, Yorkshire Building Society introduced a £5,000 deposit mortgage for first-time buyers to purchase homes worth up to £500,000.
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The Society suggested that this mortgage could help level the playing field for those who don't have financial support from their family. Previous research by Yorkshire Building Society showed that around two-fifths (38%) of first-time buyers receive financial help from friends and family to get onto the housing ladder.