What age are most first-time buyers?

Key takeaways

• The average age of a first-time buyer in England is 34
• The biggest barrier to buying is saving for a deposit
• Lifetime ISAs, low deposit schemes, and family-supported mortgages can help you buy sooner
• Affordability is key: Support is available to help you understand your options and find the right route for your circumstances.

What is the average age of a first-time buyer in England?

The average age of a first-time buyer in England is 34. This has risen from 31 years almost 20 years ago.

• Average first-time buyer (England): 34 years old
• Average first-time buyer (London): 34.5 years old
• Average age to get married: 33 for men and 31 for women
• Average age for first child (women): 29 years old

Can you be a first-time buyer at 40?

Yes, you can certainly be a first-time buyer at 40!

• 16.4% of first-time buyers are over 40
• It is estimated that by 2030, over a quarter of the first-time buyer market will be over 40

The biggest barrier to buying a home is saving for a big enough deposit, although some borrowers have other affordability challenges like being able to afford the monthly repayments, or being able to borrow enough for the mortgage.

At what age do most people buy their forever home?

There's no definitive answer to this question because a 'forever home' means something different to everyone. But we do know that the homes first-time buyers are buying have changed a lot over the years. Today, first-time buyers are buying smaller homes than in the past. They are most likely to purchase a two-bedroom flat. This means that, for many buyers, the journey to their forever home is becoming a few-step process rather than something they achieve straight away.

How to buy your first home sooner

For those who would like to buy their first home sooner, Tembo specialises in solutions that can help. We specialise in first-time buyer schemes designed to help buyers get the keys to their own homes sooner. Here are just a few options to consider:

1. Lifetime ISA

For those saving a deposit and aged 18 to 39, a Lifetime ISA could help speed up the process! You can contribute up to £4,000 in your LISA each tax year, and you’ll receive £1 from the government for every £4 you save. That means if you save the full £4,000 each tax year, you get £1,000 free each tax year you max out your account. By maximising LISA contributions for 5 years in a row, savers can receive a £5,000 government bonus, bringing their total deposit to £25,000!

Learn more: What is a Lifetime ISA and how do they work?

2. Low deposit schemes

For those struggling to save, there are several initiatives designed to help buyers purchase a home with a small deposit.

Deposit Unlock, for example, lets you purchase a new-build property from a participating home builder with just 5% saved. The government’s mortgage guarantee scheme lets you do the same, but includes older homes too.

If you have no deposit at all, you may be eligible for Skipton's Track Record mortgage, which allows you to borrow 100% of a property's value as a mortgage!

3. Family supported mortgages

Over half of first-time buyers under 35 receive financial help from their parents, but your parents don’t necessarily have to wave goodbye to their savings to help you get on the ladder.

If parents don’t have cash in the bank but they own their home, a Deposit Boost could be the answer. This involves releasing equity from your parents’ property through a small mortgage and putting the proceeds towards your deposit. If you already have a deposit of your own, you can combine your savings with the money released from your parents’ home to access lower interest rates by putting down a bigger down payment. By borrowing less, you may also have more affordable monthly repayments.

Instead of giving buyers a deposit, parents could use their savings as security. This involves placing 10% of the property’s value in a savings account with your mortgage lender, where it’ll earn interest for a set period of time and be used as a security against your mortgage. As long as you keep up with your mortgage repayments during the agreed period, your helper will get their savings back safely with interest. This means your helper can support your homeownership goals without permanently giving away their capital, provided the mortgage is maintained. It’s important to note that if you fail to keep up mortgage repayments, the lender may use these savings to cover the shortfall, and your helper may not get their money back.

Loved ones could also consider an Income Boost if they want to help but don’t have cash savings to hand. This involves adding the helper’s income (or a portion of it) to your mortgage application to boost your affordability. This could help you get on the property ladder sooner by increasing what you can borrow. 

Another advantage is that although the loved one will be named on the mortgage (meaning they’ll need to help with your mortgage payments if you ever get into financial difficulties), they won’t be named on the property itself. The house will be registered in your name alone.