….and it’s not just a matter of affordability

The traditional journey onto the property ladder is changing. Brits are buying their first homes later and increasingly after starting families, meaning many reach the market with different financial commitments and housing needs from previous generations.

Figures reported by the Financial Times show that the average UK first-time buyer is now approaching 34, compared with 29 in 2000, while almost one in three has children before buying, up from around one in four in 2020.

As a result, many are reaching life stages traditionally associated with moving up the property ladder before they have joined it. New research from Pepper Money highlights the affordability challenge this creates — but also how much the options available depend on location. 

Analysing more than 300 locations using local earnings, first-time buyer property prices, rental costs, estimated mortgage repayments and deposit accessibility, they found that:

• 41% of areas analysed were cheaper to buy in than rent, based on estimated mortgage repayments
• 187 locations had average first-time buyer prices below the £261,700 national average
• 13 of the top 20 locations for first-time buyers were in the North West or North East

As first-time buyers increasingly need their first property to accommodate them for longer, where they buy could become just as important as when they buy in determining what their budget can provide.

First-time buyers aren’t ‘starting out’ anymore

The stereotypical property journey used to begin with a relatively inexpensive starter home, followed by moving to a larger property as earnings increased or families grew. Today’s first-time buyer may have reached many of those milestones before getting the keys.

This changes the role of the first home. Rather than simply providing an entry point to homeownership, buyers may increasingly be looking for somewhere capable of meeting their needs for longer, so the traditional distinction between the first-time buyer and the ‘second-stepper’ is blurring. 

Is the ‘starter flat’ disappearing?

This changing demographic could also have implications for the traditional starter flat. New analysis reported by the Guardian found that more than 80% of leasehold flats listed for sale in England during 2025 failed to sell within six months; several contributing factors were noted, including service charges, leasehold complexity, mortgageability and differences between seller and buyer expectations.

Changing first-time buyer demographics add another dimension to this phenomenon. A smaller flat can still provide a lower-cost route into homeownership, particularly in expensive areas — but someone buying in their mid-30s with children may have very different requirements from a single buyer in their 20s.

Some therefore face a difficult trade-off: buy a smaller property sooner and move again or continue renting and saving until they can afford a first home capable of meeting their needs for longer.

There is no longer one typical first-time buyer

The financial circumstances of first-time buyers are becoming far more varied, too. The Financial Times reports that student debt is increasingly affecting mortgage affordability, while research found that 53% of first-time buyers receive family support through gifts, loans or inheritance, worth almost £11 billion in 2025.

All these factors in tandem have created a first-time buyer population with increasingly different financial profiles. Today’s first-time buyer might be balancing a strong salary against student loan or childcare costs, relying on family support for a deposit, or earning income that doesn’t fit neatly into a traditional employment model.

The cost of waiting varies dramatically across Britain

Pepper Money found estimated mortgage repayments were cheaper than rent in 41% of the areas analysed; a further 94 locations cost less than £100 more per month to own than rent.

The North East especially stands out for favouring buyers:

• Every area analysed except Northumberland had estimated mortgage repayments below local rents
• The average estimated mortgage across the region was £699 a month, compared with the £1,310 national average used in the study
• Buying in Middlesbrough was estimated to cost £157 less per month than renting, equivalent to £1,882 a year

For those delaying their first purchase, these regional differences can have a significant impact. Renting for longer may allow more time to build a deposit or increase earnings, but where estimated mortgage repayments are already substantially below rents, waiting can come with its own financial cost.

This becomes a particularly critical decision as first-time buyers increasingly need their first home to suit a later stage of life. Widening the search area could make a significant difference to what their budget can provide: a £260,000 first home and a £120,000 first home come with very different deposit and borrowing requirements, even before local earnings and rental costs are considered.

For many buyers, the question is changing from “How can I get onto the property ladder?” to “Where can I afford a first home that suits the life I already have?”

Buying sooner isn’t automatically better

A word of caution: cheaper estimated mortgage repayments do not automatically mean buying is the right choice. Buyers still need a deposit, must meet affordability and eligibility requirements and need to account for the wider costs of homeownership. Equally, continuing to rent while saving for a larger or more suitable property comes with its own trade-offs.

The label ‘first-time buyer’ is telling us increasingly little about somebody’s age, family situation or financial circumstances. For a generation, getting onto the ladder as early as possible is no longer the only objective – finding the right type of home, in a location where their budget can support it, is just as important.