"While many of us might feel sentimental about the day we got our first set of keys, the new wave of more savvy first-time owners seems to be increasingly pragmatic about their first home purchase"
- David Morris - Santander
The average stay in a first home is just four and a half years, compared to eight years for second or third homes, according to new research from Santander UK, with many buyers compromising on space and location, prompting an early move.
Despite the saying ‘home is where the heart is,’ a quarter of first-time owners say they have no emotional attachment and regard their initial property more as a stepping stone. This contrasts with older generations, where 20% of Brits over 80 still live in their first home.
Space is a major factor influencing early moves. Santander’s data shows more than half (51%) of first-time buyers choose a studio or a home with one to two bedrooms to get on the property ladder. This happens even though 18% of these buyers have at least one dependent in 2024.
Location also plays a key role, with 67% of first-time buyers purchasing in neighbourhoods unfamiliar to them. This results from a shortage of suitable properties and affordability challenges, according to Santander.
The reasons driving homeowners to become next-time buyers include the need for:
More space (37%)
A better location (18%)
Closer proximity to family (18%)
A garden (14%)
“My first home will have a special place in my heart forever, but I understand the drive to become a ‘next-time buyer’ all too well," comments Ruby Rose Eadie, mother of two and lifestyle influencer. "We knew that our first home would be a stepping stone as like so many buyers we compromised on size to be able to afford to get on to the property ladder in the first place. While it has been right for us for three years, it has become clear with our latest arrival and as our family has grown that we now need more space,"
"While moving up the ladder can be difficult, I don’t think it compares to affording that first property, and I’m so glad we compromised and took the chance to buy a property knowing it would be a home ‘for now’ rather than a home ‘forever,’ when we did.”
David Morris, head of homes at Santander UK, noted, “While many of us might feel sentimental about the day we got our first set of keys, the new wave of more savvy first-time owners seems to be increasingly pragmatic about their first home purchase.
"Given the ever-present affordability challenges faced by today’s first-time buyers, many are finding that the only way to get onto the housing ladder is by making compromises on space or location. Once that first foot is secure, their pragmatism is paying off, as many find they can quickly move on to a property better suited to their long-term needs.
“Checking that you can port your mortgage product and getting to grips with the cost of moving up the ladder are key for those buyers already looking one step ahead.”
