The average house price for first-time homebuyers in the United Kingdom (UK) was 288,000 British pounds in 2023, down from 302,000 British pounds the year before. Most regions experienced a slight decline in 2023. The South East and London were the most expensive regions to buy a home, with the average house prices was 353,724 British pounds and, 492234 British pounds, respectively.

To obtain a mortgage, first-time homebuyers in the United Kingdom (UK) need to save a deposit amounting to about 19 percent of the property purchase price. The higher the property value and the loan amount, the higher the deposit. In 2023, the average first-time buyer deposit in the UK was about 53,414 British pounds, but in the most expensive region, Greater London, the deposit amount was more than double. The share of the deposit was also much higher than in other regions in the UK. How has the house price for first-time buyers changed over time? Housing bought by first-time buyers has become increasingly more expensive since 2000, making it harder for renters to get on the property ladder. By 2023, the average house price had tripled. The price also varied in different regions, with the North East being the least expensive and Greater London – the priciest. Which are the most affordable areas for first-time buyers? While housing in certain areas can be pricy, this does not necessarily make it unaffordable, as the standard of living may also be higher. In 2021, the most affordable towns for first-time buyers were found in the North West region (Burnley) and Scotland (East Ayshire, North Ayshire, Inverclyde, West Dunbartonshire).

The average loan-to-value (LTV) ratio for first-time buyers (FTBs) remained relatively stable from 2017 to 2023. In 2017, the LTV stood at 79.7 percent, meaning that the average first-time buyer mortgage loan amounted to almost 80 percent of the total house price. The highest LTV ratio was observed in 2020 at 81.9 percent, followed by a decline in the following years to approximately 80.2 percent in 2022 and 80.3 percent in 2023. Meanwhile, loans to second and subsequent borrowers had a notably lower LTV ratio.

For the past decade, buying a home in the UK has been more affordable than renting one, when only considering the monthly costs. The renting versus buying gap fluctuated during the period and in 2016, it reached its highest value of 131 British pounds. In 2023, the monthly costs for a first-time buyer were 1,231 British pounds, compared to 1,258 British pounds for renters. Rental growth vs house price growth Housing costs in the UK have been on an uprise, with both renting and buying a home increasingly unreachable. Though the monthly costs of buying have consistently been lower in the past decade, house price growth has been much stronger than rental growth since the beginning of the pandemic. Additionally, buyers have been affected by the aggressive mortgage rate hikes, making acquiring their first home even less affordable. Barriers to homeownership Buying a home is not straightforward. For younger (18-40) potential first-time buyers, there are a number of barriers. Approximately one in three first-time buyers point out that raising a deposit was the main obstacle. Other reasons stopping buyers were not being able to take out a mortgage on their current income and poor credit ratings. Unsurprisingly, the highest share of people who buy a home with a mortgage was in the age group of 45 to 55-year-olds.

Data on resident buyers who are persons that purchased a residential property in a market sale and filed their T1 tax return form: number of and incomes of residential property buyers, sale price, price-to-income ratio by the number of buyers as part of a sale, age groups, first-time home buyer status, buyer characteristics (sex, family type, immigration status, period of immigration, admission category).

On average, first-time homebuyers In the United Kingdom (UK) saved up 19 percent of the home price for a down payment in 2023, amounting to close to 53,000 British pounds. In Greater London, which was the priciest region to buy a home, the down payment was higher, at 22 percent.

United Kingdom House Price: Qtr: First Time Buyer: Outer Met data was reported at 286,001.028 GBP in Jun 2018. This records a decrease from the previous number of 287,680.911 GBP for Mar 2018. United Kingdom House Price: Qtr: First Time Buyer: Outer Met data is updated quarterly, averaging 100,707.966 GBP from Mar 1983 (Median) to Jun 2018, with 142 observations. The data reached an all-time high of 287,680.911 GBP in Mar 2018 and a record low of 29,106.525 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: Outer Met data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s UK – Table UK.P001: House Price: Nationwide.

The average sales price of new homes in the United States experienced a slight decrease in 2024, dropping to 512,2000 U.S. dollars from the peak of 521,500 U.S. dollars in 2022. This decline came after years of substantial price increases, with the average price surpassing 400,000 U.S. dollars for the first time in 2021. The recent cooling in the housing market reflects broader economic trends and changing consumer sentiment towards homeownership. Factors influencing home prices and affordability The rapid rise in home prices over the past few years has been driven by several factors, including historically low mortgage rates and increased demand during the COVID-19 pandemic. However, the market has since slowed down, with the number of home sales declining by over two million between 2021 and 2023. This decline can be attributed to rising mortgage rates and decreased affordability. The Housing Affordability Index hit a record low of 98.1 in 2023, indicating that the median-income family could no longer afford a median-priced home. Future outlook for the housing market Despite the recent cooling, experts forecast a potential recovery in the coming years. The Freddie Mac House Price Index showed a growth of 6.5 percent in 2023, which is still above the long-term average of 4.4 percent since 1990. However, homebuyer sentiment remains low across all age groups, with people aged 45 to 64 expressing the most pessimistic outlook. The median sales price of existing homes is expected to increase slightly until 2025, suggesting that affordability challenges may persist in the near future.

Graph and download economic data for Median Sales Price of Houses Sold for the United States (MSPUS) from Q1 1963 to Q4 2024 about sales, median, housing, and USA.

This dataset contains quarterly median loan to value ratios for first time buyers in England.

This dataset contains quarterly median loan to value ratios for first time buyers in England. The data is owned by the Council of Mortgage Lenders (CML) and permission has been given to publish to ODC.

United Kingdom House Price: Qtr: First Time Buyer: Outer South East data was reported at 225,030.393 GBP in Jun 2018. This records an increase from the previous number of 221,176.892 GBP for Mar 2018. United Kingdom House Price: Qtr: First Time Buyer: Outer South East data is updated quarterly, averaging 76,764.217 GBP from Mar 1983 (Median) to Jun 2018, with 142 observations. The data reached an all-time high of 225,030.393 GBP in Jun 2018 and a record low of 24,343.620 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: Outer South East data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s UK – Table UK.P001: House Price: Nationwide.

The house price-to-income ratio in Australia was 122.1 as of the third quarter of 2024. This ratio, calculated by dividing nominal house prices by nominal disposable income per head, increased from the previous quarter. The price-to-income ratio can be used to measure housing affordability in a specific area. Australia's property bubble There has been considerable debate over the past decade about whether Australia is in a property bubble or not. A property bubble refers to a sharp increase in the price of property that is disproportional to income and rental prices, followed by a decline. In Australia, rising house prices have undoubtedly been an issue for many potential homeowners, pricing them out of the market. Along with the average house price, high mortgage interest rates have exacerbated the issue. Is the homeownership dream out of reach? Housing affordability has varied across the different states and territories in Australia. In 2024, the median value of residential houses was the highest in Sydney compared to other major Australian cities, with Brisbane becoming an increasingly expensive city. Nonetheless, expected interest rate cuts in 2025, alongside the expansion of initiatives to improve Australia's dwelling stock, social housing supply, and first-time buyer accessibility to properties, may start to improve the situation. These encompass initiatives such as the Australian government's Help to Buy scheme and the Housing Australia Future Fund Facility (HAFFF) and National Housing Accord Facility (NHAF) programs.

Despite the Office for National Statistics (ONS) reporting that the actual average deposit required to buy a home was 44 thousand British pounds (GBP), Santander's survey of potential first-time homeowners found the average target deposit was in some cases much lower. Even in London, where the average property price in early 2019 was over 460 thousand British pounds, potential first-time homeowners had a target deposit of around nine percent of the property price (39.5 thousand GBP).

The issue with having a lower deposit for a new home is that it puts buyers into a higher loan-to-value mortgage ratio. Those in the North East looked to achieve the highest deposit to property price ratio at sixteen percent.

United Kingdom House Price: Qtr: First Time Buyer: South West data was reported at 199,791.062 GBP in Sep 2018. This records an increase from the previous number of 199,133.056 GBP for Jun 2018. United Kingdom House Price: Qtr: First Time Buyer: South West data is updated quarterly, averaging 71,559.949 GBP from Mar 1983 (Median) to Sep 2018, with 143 observations. The data reached an all-time high of 199,791.062 GBP in Sep 2018 and a record low of 23,088.303 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: South West data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s United Kingdom – Table UK.P001: House Price: Nationwide.

Help to Buy - Wales is a £170 million shared equity loan scheme designed to support home ownership, stimulate building activity and provide a boost to the housing sector and wider economy. Under the scheme, loans are available to buyers wishing to purchase a new-build property worth up to £300,000. Help to Buy Wales support is available to all home buyers (not just first time buyers) who wish to purchase a new home, but may be constrained in doing so – for example, as a result of deposit requirements – but who could otherwise be expected to repay a mortgage. A shared equity loan of up to a maximum of 20% of the property purchase price is available. In addition, buyers are required to provide a 5% and will then need to secure a mortgage to cover the remaining balance. All builders (of all sizes) are able to register with the scheme and sell properties through the initiative. The data shown here are aggregated from the individual transaction records recorded by Help to Buy Wales Ltd, an extract of which is supplied monthly to Welsh Government.

The price of residential property in New Zealand was the highest in the Auckland region in December 2024, with an average sale price of around one million New Zealand dollars. The most populated city in the country, Auckland, has consistently reported higher house prices compared to most other regions. Buying property in New Zealand, particularly in its major cities, is expensive. The nation has one of the highest house-price-to-income ratios in the world. Auckland residential market The residential housing market in Auckland is competitive. Prices have been slowly decreasing; the Auckland region experienced an annual decrease in the average residential house price in December 2024 compared to the same month in the previous year. The price of residential property in Auckland was the highest in the North Shore City district, with an average sale price of around 1.21 million New Zealand dollars. Home financing Due to the rising cost of real estate, an increasing number of New Zealanders who want to own their own property are taking on mortgages. Most residential mortgage lending in New Zealand went to owner-occupier borrowers, followed by first home buyers. In addition to mortgage lending, previously under the KiwiSaver HomeStart initiative, first-home buyers in New Zealand were able to apply to withdraw all or part of their KiwiSaver retirement savings to assist with purchasing a first home. Nonetheless, the scheme was discontinued in May 2024. Furthermore, even with a large initial deposit, it may take decades for many borrowers to pay off their mortgage.

United Kingdom House Price: Qtr: First Time Buyer: North data was reported at 101,010.107 GBP in Sep 2018. This records a decrease from the previous number of 103,235.516 GBP for Jun 2018. United Kingdom House Price: Qtr: First Time Buyer: North data is updated quarterly, averaging 42,059.806 GBP from Mar 1983 (Median) to Sep 2018, with 143 observations. The data reached an all-time high of 108,409.991 GBP in Jun 2007 and a record low of 21,276.199 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: North data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s United Kingdom – Table UK.P001: House Price: Nationwide.

In 2024, the average age of recent first-time buyers in London was slightly higher than the England average. Across the UK, first-time buyers accounted for approximately 290,000 home sales. First-time buyer prices and mortgages In London, the average value of a mortgage for first-time buyers was far higher than all other regions in the UK. Apart from the initial cost of a down payment, those that can afford to, see monthly payment savings against those renting. In certain parts of the country, annual savings of buying against renting saw first time buyers amounted to over two thousand British pounds. Help to buy To encourage first-time buyers, the UK government started the "Help to buy" scheme. The scheme sees people saving for a first-time home receive a 25% bonus to their savings when purchasing a house valued at 250,000 British pounds (450,000 British pounds in London). Between December 2015 and March 2018, the North West of England saw the highest number of Help to buy ISA bonuses paid.

The price of new dwelling units in the United Kingdom was notably higher for former owner-occupiers than for first-time buyers in 2023. On average, properties bought by first-time buyers sold for 253,000 British pounds. Meanwhile, the average price paid by repeat buyers was 416,000 British pounds. Prices also varied depending on the property type. Flats and maisonettes in converted houses and terraced houses were the most affordable options for homebuyers.