The Intermediary – September 2026 - Flipbook - Page 42
RESIDENTIAL
Opinion
Does the typical
first-time buyer
still exist?
F
or years, the conversation
around first-time buyers
has centred on one
question: how do they
save a deposit? But this
may no longer be the
most important question.
The latest Skipton Group Home
Affordability Index paints a picture
of a market that has fundamentally
changed over the past three decades.
Today’s first-time buyers are older,
more likely to rely on multiple
incomes, need family support and
stretch mortgage repayments over
longer periods.
The challenge for policymakers,
lenders and the wider housing market
is that many assumptions about firsttime buyers have not evolved at the
same pace. The traditional remains
a young professional purchasing a
modest starter home aer diligently
saving a deposit. While that buyer
still exists, they are increasingly the
exception rather than the rule.
Our research found that the
under-25 first-time buyer market has
all but disappeared. In the mid-1990s,
almost one in four first-time buyer
purchases were made by people under
25. Today, it is fewer than one in 10.
Meanwhile, the average age of a firsttime buyer in England has increased
from 29 to 34.
Affordability challenges are
no longer simply delaying home
ownership. They are reshaping who
can access it. More than half of recent
first-time buyers now rely on two or
more full-time incomes, compared
with 40% in the 1990s. Around a third
receive financial support from family,
while more than half of those buying
with a mortgage are repaying it over
terms longer than 30 years.
The market increasingly depends
on buyers combining resources,
40
The Intermediary | September 2026
extending borrowing horizons or
receiving external support. That
raises an uncomfortable question:
if accessing homeownership
increasingly requires multiple
advantages, what happens to those
who don’t have them?
More than the deposit
The affordability challenge is oen
portrayed as a problem impacting
lower-income households alone.
However, our Index suggests the issue
is broader. Even among households
earning more than £77,800, only
around one in three can afford the
average first-time buyer home in their
local area using their own finances.
While saving for a deposit remains
a significant hurdle, many prospective
buyers also face rising living costs,
childcare commitments, student
debt and the challenge of meeting
affordability assessments while
paying rent. The result is a generation
of aspiring homeowners who are
oen financially responsible but
structurally disadvantaged.
There are, however, signs
of improvement. The Home
Affordability Index forecasts first-time
buyer affordability improving through
to 2028, driven largely by income
growth. Recent first-time buyers are
also purchasing homes that are, on
average, slightly larger and of beer
quality than those bought by previous
generations.
However, optimism must be
balanced with realism. Around 40%
of potential first-time buyers are still
expected to face unaffordable essential
housing costs over the forecast period.
If the profile of the first-time buyer
has evolved, then the solutions must
evolve too. That means thinking
more creatively about affordability
and recognising that different groups
JEN LLOYD
is head of mortgage products
and propositions at Skipton
face different barriers. For some, the
challenge is the deposit. For others,
it is proving affordability despite
a strong rental payment history.
For many, it is simply navigating
a housing market built around
assumptions formed decades ago.
Innovation has an important role
to play. New products, alternative
pathways to homeownership and
fresh thinking around affordability
assessments can all help more aspiring
buyers take their first step.
At Skipton, we’ve sought to
contribute to that discussion and
develop products that reflect reality.
Our Delayed Start Mortgage allows
eligible buyers to defer their first
mortgage payment for up to three
months aer completion, helping
ease the financial pressures that come
with moving home. Meanwhile, our
Track Record Mortgage was designed
for renters with a strong history of
making rental payments, but who
have struggled to save for a deposit,
enabling some buyers to purchase a
home with no deposit at all.
These products are not a silver
bullet, but they demonstrate how
the industry can adapt to beer
support the changing needs of firsttime buyers.
If we are serious about supporting
the next generation, we must start
with a simple acknowledgement:
today’s first-time buyer is not the same
as the that of the 1990s. The market
has changed, along with expectations
and buyer behaviour. The question
is whether the systems designed to
support first-time buyers can change
quickly enough to keep up. ●
