London sees sharp uplift in first-time buyer activity

This year has seen a two-decade high of 181,000 first time buyers secure their first foot on London’s housing ladder, marking a 24% annual increase.

Lettings agency Benham and Reeves analysed government figures and found that, in specific reference to London, the average age of a first-time buyer is now 35.3 years old, up from 33.8 years the previous year and 32 years old two decades ago (2003-04).

But despite London remaining the most expensive area of the UK property market, and with the addition of higher mortgage rates, 181,000 first-time buyers climbed the London property ladder in 2022-23.

This not only marked a notable 24% increase on the previous year, but was by far the highest level of FTB market activity seen across the capital in the last two decades.

As a result, London’s first-time buyers accounted for 21% of total FTB market activity seen throughout the year - the largest proportion seen since 2014-15 and fourth largest in the last 20 years.

In contrast, the number of first-time buyers outside of London fell 1.8% on an annual basis, marking a second yearly drop, with the 693,000 who did get a foot on the ladder also being the lowest total since the pre-pandemic market in 2019-19.

Director of Benham and Reeves, Marc von Grundherr, says: “It’s quite remarkable that despite London boasting the highest house prices in the land, and with the additional complications of higher mortgage rates, the level of first-time buyer activity seen of late has increased drastically.

“This has no doubt been helped by the fact that London property values have cooled, presenting a great opportunity for those looking to climb the ladder. But it also demonstrates the desirability of London amongst buyers and it is this desirability that makes it one of the most resilient property markets on a global scale.

“So while we may now see a great deal of political pandering to first-time buyers in the lead up to the election, the outcome is unlikely to influence the momentum that has been building across the London market when it comes to those making their first bricks and mortar purchase.”