Good news for anyone dreaming of owning a home in London: first-time buyers are back in a big way!
New research from estate agent Benham and Reeves shows that 181,000 people took their first step onto the property ladder in London during 2022/2023. That’s a massive jump of 24% compared to the previous year and the highest number in two decades!
This surge in activity shows that even with rising mortgage rates, buyers are determined to make their homeownership dreams a reality.
London Leads the Way
London’s share of all first-time buyers in the UK also reached a seven-year high. A significant 21% of all first-time buyers in the country chose to set up camp in the capital, proving that London’s allure remains as strong as ever.
This is in contrast to the rest of the UK, where the number of first-time buyers actually fell for the second year in a row. Outside of the capital, only 693,000 people bought their first home, the lowest figure since before the pandemic.
Are First-Time Buyers Getting Older?
Interestingly, the average age of a first-time buyer in London has crept up to 35.3 years old. That’s notably older than the average age just a year ago (33.8 years old) and significantly older than two decades ago when the average first-time buyer in London was just 32.
Election Promises and Property
With a general election on the horizon, politicians are eager to woo first-time buyers. The Conservatives have pledged to scrap stamp duty on purchases up to £425,000, while Labour has promised to give first-time buyers priority access to new-build homes.
However, Marc von Grundherr, director of Benham and Reeves, believes that London’s property market is already on an upward trajectory, stating: “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.”
Von Grundherr attributes this positive trend to a slight cooling in London’s famously high property values and the undeniable desirability of living in the capital. He concludes: “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.”