The market share of First Time Buyers in England and Wales has dropped by 6.6 percentage points since January - a 10.4% fall - as affordability pressures force growing numbers to put their home purchase plans on hold.
New data from home move comparison site reallymoving shows that First Time Buyers accounted for 63.3% of all home movers in England and Wales 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 in January to £271,784, yet softer pricing has failed to tempt more buyers into the market, suggesting affordability pressures remain significant.
FTB share falls across every region
The proportion of First Time Buyers has declined in every region of England and Wales during 2025, with the steepest falls in the South West, Yorkshire & Humber, the East of England and the North East – all down more than 9 percentage points. Notably the North East saw a 9% increase in average prices paid by FTBs between January and August 2025 and also one of the sharpest share falls – reinforcing the impact of affordability pressures. The smallest falls were in the East Midlands (-2.6 percentage points) and London (-2.9 percentage points).
London remains a FTB hotspot despite prices
Despite having the highest property prices in the country, London has the largest share of First Time Buyers, accounting for 68% of all movers. High rental costs making renting unsustainable long term, and support from the Bank of Mum and Dad, are both likely factors. There could also be more attractive buying opportunities in the market - the average price paid by a First Time Buyer in London fell by over £12,000 in the last twelve months 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 typical ‘starter home’ is changing, with a notable shift away from flat and new build purchases this year. The proportion of FTBs buying flats has decreased from 29.7% in January to 26.6% in August, a change of -10.5%, possibly resulting from negative publicity around cladding risk, ground rents and service charges.
The proportion choosing a new build home has dropped by almost a quarter (23.7%) over the same period, from 12.8% of all FTB purchases to 9.7% - the lowest since 2016. Not only are there significantly fewer new homes coming onto the market (new home completions dropped by 19% annually in Q2 2025, according to MHCLG), but they often carry a price premium and can be subject to stricter mortgage lending criteria.
Stamp duty may also be a factor, following the reduction in thresholds for First Time Buyers in March from £425,000 to £300,000. This has encouraged those who can afford it to skip the traditional first rung of the housing ladder and go straight to a house, reducing their number of overall transactions.
Reallymoving founder and CEO, Rob Houghton, 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.”
