First-time buyer activity surges 45% in Q1

Data from L&G’s Ignite platform points to a significant increase in broker searches for first-time buyers in Q1, including a sharp rise in older buyers looking to step onto the property ladder for the first time.

Total searches for first-time buyers increased by 45%, with the 18-30 and 56-65 age categories seeing significant rises of 53% and 80%, respectively. This was followed by the 51-55 year old category, which saw a 44% increase, and the 31-40 year old category with a 37% increase.

The uptick in first-time buyer searches in Q1 - which was sustained across all generational groups - was likely driven by the stamp duty deadline on 31st March 2025. Buyers may have also taken advantage of the increased availability of sub-4% products to step onto the ladder.

In terms of property values, data from the Ignite platform shows that the most searched range in Q1 was the £150,000 to £250,000 category, accounting for 39% of all searches – up from 36% in Q4 2024.

Meanwhile, the most searched LTV category for first-time buyers was the 91-95% range, making up 34% of total searches. However, over the same time frame, L&G also recorded a 43% increase in the number of first-time buyers searching for 51-55% LTV mortgages.

This may reflect an improvement in overall affordability, meaning the average borrower will be less overleveraged in Q1 2025.

Kevin Roberts, managing director of mortgage services at L&G, said: “A strong start to the year for first-time buyers is more than encouraging – it’s a positive sign of the market’s health as we head into spring, a traditionally busy period for property sales and new listings. Lower mortgage rates have been a feature of the first quarter of the year, with several major lenders now offering products at rates below 4%. Although the artificial stimulus of the lower stamp duty threshold is now over, the outlook is positive It’s great to see first-time buyers in a position where they can really engage with the market."