First-time buyer
First-time buyer is a term normally associated with the residential property market. Very simply, describes people who are prospective purchasers of their first property, be that a flat or house.
Most, but certainly not all, first-time buyers are young people who have recently started their working life and are keen to get on the housing ladder. This can be a difficult process, given the problems associated with saving for a mortgage deposit, their limited funds and their potentially unestablished credit status. This is particularly so given the housing shortage and long term increase in house prices.
People are generally having to work longer to be able to save for a mortgage deposit. In 1960, the average age of a first-time buyer was 23, and they needed to save for two years to have £595 (around £12,738 today) available for a mortgage deposit.
In 2019, the average first-time buyer will be 30 or older and they will typically have to save for more than five years to have their required average mortgage deposit of £20,622.
Recent years have seen the introduction of various government and private-sector initiatives designed to help first-time buyers get onto the housing ladder. These include:
- Help-to-Buy schemes.
- Equity loans.
- Mortgage guarantees.
- Shared ownership.
- NewBuy.
NB English Housing Survey, Headline Report, 2020-21, published by the Department for Levelling Up, Housing and Communities in 2021, suggests: ‘First time buyers are defined as households that have purchased a property that is their main home in the last three years, and in which neither the HRP or partner have previously owned a property. It includes households who have purchased their property outright as well as those who are buying with the help of a mortgage or loan.’
[edit] Related articles on Designing Buildings
- Buy-to-let mortgage.
- Help to buy.
- Home ownership.
- Housing market.
- Housing shortage.
- National Planning Policy Framework.
- Owner.
- Rent to buy.
- Resident.
- Right to buy
- Right to rent
- Self build.
- Self build initiative.
- Shared equity / Partnership mortgage.
- Shared ownership.
- The rise of multiple property ownership in Britain.
- What is a mortgage?
Featured articles and news
Combating burnout.
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.