40 somethings drive first-time buyer applications

19/06/2023 01:00 (UTC)

First-time buyer trends shift across the country as those in their 40s drive application increases The number of first-time buyers in the UK has increased by 10% between 2019 and 2022 First time buyer numbers in the 20s age group declined by nearly 10% over the same time frame

UK, 19 June, 2023: New data released by Experian suggests that the younger generation of first-time buyers are finding access to the housing ladder increasingly difficult, with applications from people in their 20s dropping by 9% over the past four years.1

In 2019 people in their 20s made up the largest share of first-time buyer applicants, but they now come in second place, behind house hunters in their 30s.2

The data shows that people in their 40s have driven the increase in the number of first-time buyers over the past four years, with this proportion growing by 14% since 2019. Buyers in their 30s have increased 7% in the same time period. These two age groups have driven the increased number of first-time buyers by 10% overall, when looking at figures from 2019 to 2022. 1

Experian recently announced a new partnership with Leeds Building Society through which the lender now includes Experian Boost data as part of its mortgage decision process. This means that Experian Boost users may receive access to a wider range of mortgage options when looking for their first home, as Leeds Building Society could support younger applicants in particular as they may have less information on their credit reports.

James Jones, Head of Consumer Affairs at Experian, says: We know the housing market is challenging for first-time buyers, but its particularly difficult for younger generations on lower wages, whose finances and current credit scores might be limiting their borrowing options Even though younger generations are waiting longer to get on the ladder likely as a result of increased prices it is encouraging to see that mortgage applications among the first-time buyer population are generally increasing.

Now that weve partnered with Leeds Building Society, Experian Boost users may be able to access more affordable mortgage options which could help them get on the property ladder.

Whilst Leeds Building Society is the first to use Boost in mortgage decisioning, 13 lenders are using Boost for broadening credit decisioning, providing consumers with better access to affordable credit.

Regional variations show peoples different experiences across the UK

Northern Ireland saw the largest increase in first-time buyer numbers (15%) over the period of time analysed. At the same time, applicants in Wales have decreased by 17%1.

The top five regions where numbers of first-time buyers increased were:

Regional variations by age-group

Younger buyers contributed to a higher proportion of applications in locations where house prices have been traditionally lower, while older demographics are most prevalent in London and the South East.

The areas in the UK that have the highest proportion of first-time buyer applicants under 30 vs those with the highest proportion of first-time buyer applicants in their 40s2 were:

FTBs in their 20s

FTBs in their 40s

North East: 42%

London: 21%

Yorkshire and the Humber: 41%

South East: 18%

Wales: 41%

West Midlands: 18%

East Midlands: 40%

Northern Ireland: 17%

North West: 38%

East England: 16%

Notes to editors:

Media contact:

Brands2Life for Experian

Tel: 0207 592 1200 / Email:[email protected]

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