Mortgage lenders forwarded a report £82.8bn of mortgage debt to 390,000 first time consumers within the 12 months to September 2025, in response to evaluation by Savills. This can be a 30% improve on the earlier 12 months.
Total, first time purchaser borrowing accounted for 20% of all spending within the UK housing market over the identical interval. That is the best proportion since at the least 2007, in response to Savills evaluation of information from the Financial institution of England, HMRC, the Land Registry and its counterparts in different elements of the UK.
“File lending to first-time consumers partly displays the frenzy to get issues by way of previous to the tip of the stamp obligation vacation earlier within the 12 months,” says Lucian Cook dinner, head of residential analysis at Savills.
“On the similar time, homeownership is extra accessible now than at any level within the final three years, because of decrease borrowing prices, decrease actual home costs, and extra accessible mortgage debt. The FCA’s revised steering on interpretation of mortgage regulation again in March, specifically, gave lenders extra latitude to lend at greater mortgage to earnings and mortgage to worth ratios, to the advantage of first-time consumers.”
Complete housing market spend
The whole dimension of the UK housing market expanded by 14% to £417 billion in 12 months to September. Regardless of the sharp improve in exercise, complete spend continues to be a way under the report of £521bn within the 12 months to September 2021, throughout the submit lockdown mini housing market growth.
“Additional rate of interest cuts anticipated later this 12 months are more likely to broaden the pool of potential consumers coming into the market in 2026,” continues Lucian Cook dinner, head of residential analysis at Savills. “The continued scarcity of rental properties is about to maintain first-time purchaser demand robust going into the brand new 12 months. In the meantime, current mortgage holders searching for to maneuver residence are additionally anticipated to turn out to be regularly extra lively, with falling charges enabling them to tackle barely bigger loans and improve their budgets.”
Debt vs fairness
The evaluation exhibits that the stability between mortgage and deposit is slowly shifting for first-time consumers.
The quantity put down by the use of deposit amongst this group stood at £21.8bn within the 12 months to September 2025 however it remained under the £25.9bn report 4 years earlier (2021).
Nonetheless, the evaluation exhibits that spending by an estimated 397,000 money consumers at £147.6bn nonetheless accounts for the biggest a part of the market, albeit that has fallen by 3% over the course of the 12 months.
