Buying Your First Home in 2026: The Numbers Every First-Time Buyer Should Know
Thinking about buying your first home? From deposits and house prices to mortgage terms and additional costs, the latest figures give a useful insight into what first-time buyers need to know before taking their first step onto the property ladder.
Buying your first home is a big step, and knowing the numbers behind the property market can make it easier to understand what you need to budget for.
From the size of the average deposit to the age of the typical first-time buyer, the latest figures give an interesting picture of where first-time buyers are today.
Almost 1 million first-time buyers
According to the latest English Housing Survey, around 967,000 recent first-time buyers were recorded in England in 2024–25.
That is a significant increase from around 564,000 ten years earlier in 2014–15.
The average age of a first-time buyer was 34, showing that buying your first home is not necessarily something that happens in your twenties. In fact, 58% of first-time buyers were aged between 25 and 34, while 28% were aged 35 to 44.
So, if you are in your thirties or even forties and are still waiting to buy your first home, you are certainly not alone.
How much deposit do first-time buyers need?
The deposit is often the biggest hurdle for people trying to get onto the property ladder.
The latest English Housing Survey found that the average first-time buyer deposit was £78,131, although the median was considerably lower at £36,500. The difference is important because a small number of much larger deposits can push up the average.
The majority of buyers are not putting down enormous deposits. In fact:
- 59% of first-time buyers with a deposit paid less than 20% of the purchase price
- 16% paid between 1% and 9%
- 43% paid between 10% and 19%
- 86% used savings towards their purchase
- 31% reported receiving help from family or friends
- 6% used an inheritance as a source of their deposit
This shows why saving regularly and understanding your mortgage options can be so important.
What does the average first-time buyer property cost?
The latest UK House Price Index figures show that the average price paid by a first-time buyer in Great Britain was £228,218 in December 2025, an annual increase of 2.4%.
For the North West, the average first-time buyer price was £189,056, compared with £244,799 across England. The North West figure had increased by 4.9% over the previous year.
Of course, averages can only tell you so much. Property prices vary considerably between towns, villages and individual streets, which is why looking at the local market is far more useful when working out what you can realistically buy.
Mortgage terms are getting longer
Another interesting change is the length of mortgages being taken out by first-time buyers.
In 2024–25, 62% of first-time buyers with a mortgage had a repayment period of 30 years or more.
Five years earlier, that figure was 47%.
Almost all first-time buyers with a mortgage - 97% - had a repayment mortgage.
A longer mortgage term can reduce the monthly payment, but it can also mean paying interest over a longer period. It is therefore important to look at the overall cost of a mortgage rather than simply focusing on the monthly figure.
What about the monthly mortgage payment?
Across all households with mortgages in England, the average mortgage payment in 2024–25 was £242 per week, equivalent to around £1,049 per month.
The median was lower at £208 per week, or approximately £901 per month.
These figures cover mortgage households generally rather than first-time buyers alone, so they should not be treated as a typical first-time buyer payment.
Your own monthly payment will depend on the property price, deposit, mortgage rate, term and the amount you borrow.
Don't forget the costs beyond the deposit
It is easy to concentrate on saving the deposit and forget about the other costs involved in buying a home.
You may need to budget for:
- Solicitor and conveyancing fees
- Mortgage fees
- Survey costs
- Buildings insurance
- Moving costs
- Removal costs
- Furniture and household items
- Stamp Duty, where applicable
Having some savings left after paying your deposit can therefore be just as important as reaching the deposit target itself.
So, what should first-time buyers do?
The figures show that there is no single route onto the property ladder.
Some buyers save their deposit themselves, while others receive help from family. Some buy with a 5% or 10% deposit, while others have more available. Mortgage terms also vary considerably.
The important thing is to understand what you can comfortably afford before you start viewing properties.
Getting a Mortgage in Principle is a useful starting point, followed by working out your additional buying costs and deciding what monthly payment fits comfortably within your budget.
Then you can start looking at the properties that match your circumstances.
Looking for your first home?
At Pendle Hill Properties, we work with buyers across Lancashire, helping first-time buyers understand what is available and what happens next when they find a property they like.
Our Members Club also gives registered buyers the opportunity to hear about suitable properties and opportunities as they become available.
If 2026 is the year you want to buy your first home, getting prepared now could put you in a much better position when the right property comes along.
