Far too often, first-time buyers (FTBs) are thought of and treated as one homogenous group, but their paths to homeownership are far from uniform. Income, location, gender, family status, and access to financial help, like the ‘Bank of Mum and Dad,’ all shape their unique experiences. As a result, our research has found that the needs of many FTBs in the UK have been sidelined for too long, and the consequences are becoming stark.
We’re proud to support the largest community of aspiring FTBs in the UK and we’re committed to giving them a voice, to ensure that their needs and lived experiences are understood by those who are responsible for shaping policy and product design. Building on our ongoing campaign work with policymakers and the wider industry, we’ve launched our ‘Voice of FTBs’ White Paper at the Labour Party Conference. We surveyed 4,000 aspiring homeowners and 500 recently successful first-time buyers across the UK, to understand the challenges they face and their unique lived experiences.
Through our in-depth research, we uncovered a growing number of challenges that, if left unaddressed, risk deepening economic divides and could undercut the very foundation of wealth creation in our society. We break down the findings.
Millennials in the middle
- 61% of millennials feel older than most other people buying their first home (vs 37% of Gen Zs)
- 30% have delayed having a family or having more children to get onto the property ladder
- 67% worry they will be paying off their mortgage into retirement
Nearly half of aspiring first-time buyers (49%) are millennials, but this generation is facing a unique set of challenges. Millennials also feel the most societal pressure to own a home, placing the highest importance on this financial goal of all the generations, often delaying other key life events to prioritise it. Dive deeper into the challenges facing millennials on page 12 of our White Paper.
The impact of financial support
- 71% of recently successful first-time buyers bought their home with financial support
- 46% of aspiring first-time buyers expecting financial support plan to buy their home within the year
- Those without support think it will take twice as long
Our research reveals just how much of an impact inter-generational wealth can have within the first-time buyer community and how, without mitigating action, we risk deepening existing divides in society. First-time buyers who benefit from financial support are not only able to buy twice as quickly as those without support, but they can therefore prioritise saving for future goals earlier in life. Measures that support everyone to realise their home ownership goal, regardless of their access to financial support, are crucial. Learn more about the effects of financial support on page 14.
The single penalty
- 39% of solo first-time buyers said it will take longer to buy than they expected
- Those buying a home on their own are 33% more likely to describe the home-buying process as ‘overwhelming’
- 1 in 10 solo buyers took up to 10 years to save for their first home
Estimates suggest that 4 in 10 UK adults are single¹ – their relationship status shouldn’t affect their ability to get on the property ladder. Solo first-time buyers are trying to save an average deposit of £44k on their own, compared to those buying with others who are aiming to save £48k between them. It’s a much steeper hill to climb alone – and it’s clear that this group needs much greater support to ensure they aren’t financially marginalised on their home-buying journey. Keep reading about the challenges facing single first-time buyers on page 17.
The gender deposit gap
- Millennial women have saved £7.4k less on average towards their deposit than their male counterparts
- 44% of women surveyed have cut back on their deposit savings, compared to a third of men (33%)
- 30% of women have delayed having children to buy a home, compared to 24% of men
Women have long been affected by the gender pay gap, but our findings show that a clear ripple effect of this is a gender deposit gap. Not only are women able to save less towards their deposit than men in the first place, but they’re more likely to push back other significant life events in order to prioritise getting on the property ladder. No one should have to alter their life plans in order to buy a home of their own. Find out more about the experiences of women on page 20 of our White Paper.
Supporting the next generation of home-buyers
There’s no one-size-fits-all solution to address the issues facing the UK housing market and it will no doubt require a range of tailored responses from both the government and the industry. However, we believe that understanding the diverse needs of FTBs is key to offering meaningful support and helping them get onto the property ladder.
Four key asks to support FTBs
Our ‘Voice of FTBs’ White Paper aims to highlight the diverse needs and experiences within the UK’s FTB community, to shape and inform the opportunities for reform and innovation. Based on our research and discussions with FTBs, we are calling for four tangible actions from the government:
- The creation of a government working group to address the challenges identified from listening to the voices of FTBs
- A commitment to considering not just the long-term solutions like building more houses, but also practicable solutions for the short and medium term
- A commitment to futureproof the Lifetime ISA, to help FTBs save for that all-important deposit
- Regularly meeting with FTBs as the voices that need to be heard on this topic
Find out more about our recommendations on page 28.
Source: Moneybox research, Censuswide, August 2024.
¹ ONS, Marriage and civil partnership status in England and Wales: Census 2021