In a recent analysis conducted by Halifax, it has been revealed that the number of first-time homebuyers in the UK surged by nearly 20% in 2024, compared to the previous year. This positive increase is a stark contrast to the challenging conditions faced by first-time buyers in 2023, where there was a significant 22% decline in the number of first-time buyers. The volatile nature of the first-time buyer sector is clearly illustrated by these fluctuations, which are heavily influenced by market conditions and mortgage rates.
According to the data shared by Halifax, the average deposit being put down by first-time buyers in the UK is £61,090, with the typical property value standing at £311,034. The average age of a first-time buyer has also risen to 33, which is two years older than it was a decade ago. Despite the challenges faced by first-time buyers, including the 8% increase in house prices in 2024, they continue to make up more than half of all new mortgages in the UK.
The Isle of Anglesey in Wales has been identified as the most affordable area for first-time buyers in Wales, making it the only Welsh region to feature in the UK’s top ten list. Based on data from various sources including Halifax’s housing statistics database, UK Finance figures, and official earnings data, the average house price-to-earnings ratio in Anglesey is 3.8, placing it among some of the most affordable areas in the UK for first-time buyers.
House prices in Anglesey have seen an overall average of £257,731 in the past year, with detached properties selling for an average price of £347,398. Terraced properties on the island sold for an average of £155,499, while semi-detached properties fetched around £222,370 on average. This data highlights the affordability of homes in Anglesey, making it an attractive option for first-time buyers looking to get on the property ladder.
Amanda Bryden, the head of mortgages at Halifax, noted that the increase in first-time buyers in 2024 could be attributed to improved mortgage affordability, with interest rates becoming more favourable and stable. She mentioned that the substantial deposit required and the high average property prices are prompting many first-time buyers to team up and purchase homes jointly. Despite the challenges, it is promising to see that first-time buyers are still a significant driving force in the property market.
Overall, the data paints a positive picture for first-time buyers in Wales, particularly in the Isle of Anglesey, where affordability and average property prices make it an appealing choice for those looking to take their first steps onto the property ladder. As the property market continues to evolve, initiatives to support first-time buyers and make homeownership more accessible will play a crucial role in shaping the future of the housing market in Wales and the wider UK.