"The fact that the UK’s house price-to-income ratio change over the last five years remains better than that of many comparable countries gives us good reason to remain optimistic about the long-term health and accessibility of our housing market"
- Steve Anderson - Yopa
First-time buyers in the UK are spending 63% more to purchase their first home than they were a decade ago, according to new analysis from full-service estate agency Yopa. However, relative to many other global markets, the UK continues to offer more favourable affordability conditions.
Earlier research from Yopa highlighted a significant rise in the average first-time buyer (FTB) home price, which has jumped by 63% over the past ten years.
The latest market data from the firm shows this increase has contributed to a higher average age for first-time buyers, now standing at 33, up from 31 in 2014. Regional shifts vary, with the South East and West Midlands recording the largest increases over the past three years, while London has seen a smaller rise of just one year.
Despite these challenges, the total number of first-time buyers has grown by 9.9% over the last decade. In 2014, there were 310,280 first-time buyers, rising to 341,068 by 2024. This equates to an annual growth rate of roughly 2%, underlining the sustained ambition of many individuals to enter the housing market.
International comparisons further highlight the UK's relative position. At an average first-time buyer age of 34, UK buyers are entering the market sooner than those in Canada and Australia (both 36) and New Zealand (35). Only buyers in France (31) and the United States (33) are purchasing earlier.
In terms of broader affordability indicators, the UK also holds up well. Looking at the house price-to-income ratio over the last five years, the UK has seen a -1.3% change, based on the latest OECD data. This places it ahead of 20 other nations in the analysis, suggesting a more stable affordability trend despite rising house prices.
Countries with the least favourable five-year change include:
Greece, where the index rose by 22.1%
The United States, with a 21.0% increase
Estonia, which recorded a 20.3% rise
Portugal, up 19.7%
Switzerland, where the figure climbed by 17.5%
A positive change in this index indicates that property prices are rising faster than incomes, eroding affordability.
“It’s clear that first-time buyers are facing more financial pressure than ever before, both in terms of the upfront cost of buying and the age at which they’re finally able to do so,” explained Steve Anderson, national franchise director at Yopa. “But encouragingly, demand hasn’t waned, and the fact that the UK’s house price-to-income ratio change over the last five years remains better than that of many comparable countries gives us good reason to remain optimistic about the long-term health and accessibility of our housing market.”
