Over eighty percent of novice homebuyers resorted to moving back with their parents to facilitate home ownership, according to a recent survey.
First-Time Buyers Adapt to Affordable Housing Market
In 2025, the trend among first-time buyers is a significant compromise on property size and space to afford homes in preferred locations. According to a TSB survey, 75% of first-time buyers chose smaller properties with fewer bedrooms and less outdoor space to buy in their desired postcode areas.
The survey also revealed that while 22% bought their dream home and 38% made minor compromises, 9% made major compromises focused on affordability and location.
Financial Assistance and Sacrifices
Almost all first-time buyers (96%) received some assistance with their deposits, the majority coming from family (68%) and friends (57%). To save for deposits, buyers commonly postponed major purchases (38%), limited social activities (37%), or took on second jobs (37%).
Supportive Mortgage Market
The increasing demand for affordable homes has led to more flexible mortgage products. Low-deposit mortgages have become more common, with some 100% mortgages returning to the market. Additionally, buyers can now borrow up to 20% more at the same rate compared to earlier in 2025, increasing buyer activity despite rising stamp duty costs.
Upfront Costs and Stamp Duty Changes
Stamp duty changes in 2025 mean first-time buyers now pay more stamp duty than previously, with the relief threshold lowered from £425,000 to £300,000 and the relief cap lowered from £625,000 to £500,000. This results in heightened upfront costs for properties above these limits.
Regional Differences
The average age of first-time buyers is 32, with the regions of London (34), the South East (33), and East Midlands (33) having the oldest average age. Those in Yorkshire & The Humber have the youngest average age of first-time buyers, at 30.
The average deposit size in the UK is 18.9 percent, with London having the highest deposit at 23 percent, compared to Wales (13%). The East Midlands saved up the quickest (2.56 years), while those in Wales took the longest to save up (3.39 years).
Feelings of Financial Security and Relief
45 percent of first-time buyers felt financially more secure after buying their home, and almost two fifths (39%) of first-time buyers felt relieved after buying their home.
Craig Calder, Director of Secured Lending at TSB, stated that many first-time buyers had to make sacrifices to meet their deposit targets, such as moving in with parents and taking a second job. He also suggested that speaking with a broker or one's bank can help secure the best deal for one's housing and affordability needs.
TSB customer data shows that first-time buyers are taking out an average of 31-year terms, a decrease from 32 in 2024. 38% said their new home was mostly what they wanted, but with a few compromises, and 75% of new property owners opted for fewer bedrooms, a smaller property, and less outdoor space to buy in a preferred postcode.
In summary, first-time buyers are balancing affordability by compromising on property size and location preferences, relying heavily on family and friends for deposit support, and benefiting from more flexible mortgage products, even as upfront costs like stamp duty rise.
To manage their budget and afford homes in desired locations, first-time buyers willingly choose smaller properties with fewer bedrooms and less outdoor space in the home-and-garden category. To achieve this, they make personal-finance adjustments such as postponing major purchases, limiting social activities, or taking on second jobs.
With the increasing availability of low-deposit mortgages and more flexible mortgage products in the finance sector, first-time buyers, despite higher upfront costs due to stamp duty changes, can benefit from borrowing up to 20% more at the same rate.
