First-Time Buyers Market | The UK housing market in 2024 saw a rise in buyer activity, driven largely by first-time buyers entering homeownership. As mortgage rates eased and house prices settled, new opportunities emerged for buyers previously priced out after the pandemic.
Data from leading property conveyancers reveals changing preferences among buyers. Interest in new builds is falling, while demand for business-use purchases and primary homes remains steady.
In 2024, first-time buyers accounted for 71% of all clients, up from 68% in 2023. This increase highlights growing confidence among younger buyers entering the market for the first time.
Falling interest rates and government schemes, such as the Lifetime ISA, have supported this trend. The ISA allows savers to deposit up to £4,000 annually with a 25% government top-up.
The number of existing homeowners purchasing properties dropped for the second year. Just 29% of buyers already owned a home in 2024, down from 32% in 2023.
Primary Homes Over Buy-to-Let
Most buyers in 2024 wanted homes to live in. 81% of buyers said their new home would be their main residence, up from 78% in 2023.
This reflects a move away from investment purchases and towards long-term settlement. Only 12% of buyers intended to rent out their properties, down from 13% in 2023.
New Build Popularity Declines
Despite government efforts to boost housebuilding, fewer buyers chose new-build properties. Only 10.39% of purchases were new builds, compared to 11.18% in 2023 and 14.35% in 2021.
Concerns over location, construction quality, and higher prices may be influencing buyer decisions. These issues appear to outweigh the appeal of modern features or energy efficiency.
Steady Demand for Business Use
Around 30% of residential purchases in 2024 were made for business-related use. This figure has remained stable and is double the level recorded in 2021.
Only 9% of purchases were made through companies, up from 8% the year before. The rest were likely made by individuals acquiring homes for mixed or commercial purposes.
Despite economic uncertainty, business-related purchases have stayed resilient. Buyers may still see value in property for both personal and commercial gain.
Overseas Purchases Decline
Fewer international buyers entered the UK property market in 2024. Non-UK resident purchases fell to 3.51%, down from 4.24% in 2023.
Factors include rising living costs, EPC upgrade requirements, and post-Brexit uncertainty. These concerns may have affected demand among overseas investors.
Security Over Speculation
In 2024, most buyers preferred stability over speculative gains. Four in five bought homes to live in, with only a few investing in lettings or specialist properties.
The number of buyers with partners who already owned a home fell from 13% to 11%. This may reflect a move towards independent homeownership.
Very few buyers looked for HMOs or holiday lets—just 1% in each category. This trend suggests caution amid rising costs and uncertain rental demand.
First-Time Buyers Market | Outlook for 2025
With interest rates easing and house prices stable, 2025 may bring continued growth in first-time buyer activity. These buyers are likely to benefit the most from current conditions.
However, the rental sector could face more pressure. Energy regulations and higher costs may cause more landlords to exit the market.
Upcoming Policy Changes
Two key developments could affect the market in 2025:
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Stamp Duty Cuts Ending
Temporary Stamp Duty Land Tax relief is set to end in March 2025. This may affect affordability, especially for buyers moving up the ladder. -
Labour’s £5 Billion Housing Pledge
The Autumn Budget included a £5 billion investment in affordable housing. £500 million will go to the Affordable Homes Programme, supporting lower-income buyers.
First-Time Buyers Market | What Needs Attention?
To support homebuyers and maintain progress, the government may need to:
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Lower interest rates further to reduce monthly mortgage costs;
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Enhance savings schemes for first-time buyers;
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Support EPC upgrades for landlords and homeowners;
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Improve planning systems to increase housing supply.
First-Time Buyers Market | A Promising Year for Buyers
2024 marked a strong return for homebuyers, especially those purchasing for the first time. Falling mortgage rates and government support helped many reach their goals.
Looking ahead, a stable economy and focused housing policies will be vital. Continued support will help more buyers enter the market and ensure lasting growth.
The data from 2024 is delivered by First-Time Buyers Market | Leading the Charge in 2024.” Stay “Connect“for more updates soon!
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