First-time buyers have bought record 50pc of homes sold in London this year.
Across the country, the share of houses purchased by first-time buyers hit an all-time high of 33pc in the first quarter of 2024, as falling mortgage rates allowed more people to get their foot on the property ladder.
The biggest jump in first-time buyer purchases was in the South of England, according to analysis by estate agents Hamptons. In London, half of sales went to first-time buyers, up from 28pc a decade ago, as lower rates unlocked house moves in more expensive areas.
However, first-time buyers still faced an affordability squeeze, forcing them to borrow less and opt for smaller homes.
For the first time, over half (51pc) of first-time buyers purchased a one or two-bedroom property. Meanwhile, the average London first-time buyer spent £108,710 less than in 2020 when mortgages were cheaper.
Aneisha Beveridge, of Hamptons, said: “In a bid to escape the heated rental market, first-time buyers have dominated the sales market this year, making up a record third of all purchasers.
“This unprecedented move comes despite a limited package of government support measures. Instead, with high mortgage rates curtailing their ability to borrow, most are compromising on a smaller home to get a foot onto the housing ladder.”
The analysis also revealed the areas with the highest share of first-time buyer purchases. Top of the list was Slough, where first-time buyers were behind 89pc of purchases.