There has been a 13 per cent increase in 56-65 year-olds searching for their first home, data from Legal & General Ignite has found.
In the first quarter of the year, 13 per cent of older buyers were looking for their first home compared to the first quarter of 2023.
Legal & General said this suggests a growing number of buyers are having to wait until their late 50s and beyond but are still keen to take their first step onto the housing ladder.
Legal & General Mortgage Services managing director, Kevin Roberts, said: “Our figures show that the desire to own a home remains strong, even for those who are waiting longer to take those first steps onto the property ladder.”
Older buyers were not the only ones looking to get on the property ladder, as further insight from Legal & General found that in the 12 months ending April 2024, 38 per cent of potential buyers in the UK were first time buyers, with an average age of 33.
Additionally, when comparing Q1 2024 and Q4 2023, there was a 37 per cent increase in 18-30 year-old first-time buyers searching for a property, and a 33 per cent increase in 31-40 year-old first-time buyers.
However, the data pointed out there was a natural decline in overall market activity in the lead up to Christmas, so these increases mark a return to activity in the spring months.
Affordability
Roberts discussed how affordability is affecting first-time buyers: “As affordability begins to ease, we’ll likely see further activity in the first-time buyer market, especially if inflation continues to fall and the Bank of England reduces its base rate later in the year.
“There are a number of factors likely to be impacting people’s decisions to buy a property. High rental prices may encourage some customers toward homeownership.
“Equally, as mortgage rates decreased at the start of the year, customers who had been waiting for the right time to buy may have found products which are affordable.”
Roberts added that, while affordability has eased somewhat, “we know the Bank of Family has still been playing a key role in the housing market, either by gifted deposits or via practical support to help family members who are trying to save for their first home.
“This support from parents, grandparents, and other family members reached record levels in 2023, helping 318,400 property purchases with an astonishing £8.1bn worth of lending.
“More than half (58 per cent) of the value of intergenerational support goes to help first-time buyers.
“However, if that housing ownership dream is going to be achieved we’d still recommend buyers seek out a professional mortgage adviser to give them the best guidance on their options.”
Further analysis from Legal & General Ignite found the average loan value searched for by advisers on behalf of first-time buyers over the past year was £217,125.
When comparing Q1 2024 to Q1 2024, the average loan value searched for increased by 0.81 per cent from £220,358 to £222,148.
