A report released this week by the The English Housing Survey (EHS) has found the number of first time buyers has not changed in the last 10 years, but numbers are down on 20 years ago.
In 2015-16, there were 654,000 first time buyer households in England – approximately 3% of all households in England.
The overall number of first time buyers decreased from 922,000 households in 1995-96 to 675,000 households in 2005-06, and has remained at around that level since.
First time buyers have higher incomes and more help with funding their deposits than they had 20 years ago.
Two thirds (66%) of first time buyers were in the two highest income bands in 2015-16.
About two thirds (64%) of first time buyers pay a deposit up to 20% of the purchase price. In 2015-16, the average deposit for first time buyers was £48,831. Average deposits were higher in London (£94,088).
The EHS report shows today’s first time buyers are older, more likely to buy with a partner, and to have dependent children compare with a decade ago.
In 2015-16, the average age of first time buyers was 32. One in five (21%) first time buyers was aged between 35 and 44 years in 2015-16, up from 16% in 2005-06. Three quarters (74%) of first time buyers were couple households, a marked change since 2005-06 (66%).
This may be due to an increasing need for two incomes to be able to buy.