"Unless we start to see a dramatic increase in housebuilding, as has been promised, and targeted measures to boost affordability, first-time buyers are unlikely to regain their market share any time soon"
- Rob Houghton - reallymoving
The share of First Time Buyers (FTBs) in England and Wales has dropped by 6.6 percentage points since January, representing a 10.4% decline, as affordability pressures force many to delay their home purchases.
New data from home move comparison site Reallymoving shows that FTBs accounted for 63.3% of all home movers in January, falling to 56.7% in August. Over the same period, the average price paid by FTBs fell by 3.1% from £280,610 to £271,784. However, softer pricing has not attracted more buyers, suggesting affordability challenges remain significant.
FTB share declines across all regions
Every region of England and Wales saw a drop in the first-time buyer market share in 2025. The steepest falls occurred in the South West, Yorkshire & Humber, the East of England, and the North East, all down more than nine percentage points. The North East also recorded a 9% increase in average prices paid by FTBs between January and August, reinforcing the role of affordability pressures. The smallest declines were in the East Midlands (-2.6 percentage points) and London (-2.9 percentage points).
London remains a hotspot
London continues to hold the highest proportion of first-time buyers, with 68% of all movers in the capital. High rental costs and support from the Bank of Mum and Dad are likely contributing factors. There may also be more attractive buying opportunities, with the average price paid by a first-time buyer in London falling by £12,357 over the past year, from £454,800 in August 2024 to £442,443 in August 2025, a decrease of 2.7%.
Shift away from flats and new builds
The traditional ‘starter home’ is changing, with fewer FTBs buying flats or new build properties. The proportion purchasing flats dropped from 29.7% in January to 26.6% in August, a 10.5% decline, possibly influenced by negative publicity around cladding risk, ground rents, and service charges.
New build purchases have fallen by almost a quarter (23.7%) over the same period, from 12.8% of FTB transactions to 9.7%, the lowest level since 2016. Fewer new homes are coming onto the market, with completions down 19% annually in Q2 2025, according to MHCLG. New builds also tend to carry a price premium and stricter mortgage criteria.
Stamp duty changes may also have contributed. The threshold for first-time buyers was reduced in March from £425,000 to £300,000, encouraging some buyers to bypass the traditional first rung of the housing ladder and purchase houses instead, reducing overall transactions.
Rob Houghton, founder and CEO of Reallymoving, said, “These figures highlight the scale of the challenge facing First Time Buyers in 2025. Prices may be softening and mortgage rates inching down, but not nearly enough to offset the affordability pressures being felt in every region of the country. First-time buyers face trying to save for a deposit amid rising living costs and secure a mortgage at a sustainable repayment rate, with very little targeted government support to help them onto the ladder.
“Unless we start to see a dramatic increase in housebuilding, as has been promised, and targeted measures to boost affordability, first-time buyers are unlikely to regain their market share any time soon. Beyond restricting market mobility, this will undermine the financial security of young people and erode the long-term stability that home ownership can provide.”
