In 2023, the number of first-time buyers who bought a home with a mortgage fell to its lowest level in a decade, according to analysis by Yorkshire Building Society. 

However, the ratio of first-time buyers in the mortgage market grew slightly to 54% of new house purchase activity. This compares to 53% in 2022 and 50% two years ago – and remains significantly higher than the 41% recorded a decade ago.

Although the analysis by Yorkshire Building Society forecasts the number of people taking their first step onto the property ladder will have fallen to 290,000 in 2023, down by 21% on 2022 (370,287) and the lowest number since 2013 (260,000), the fall is less than the 30% drop in overall purchaser numbers. 

According to Yorkshire Building Society, this demonstrates that first-time buyers remain determined to overcome higher interest rates, cost-of-living pressures and house price highs to invest in their own bricks and mortar.

Last year’s fall in first-time buyer numbers also follows the 20-year high of more than 400,000 in 2021, which was fuelled by government initiatives including stamp duty incentives, changing working habits and low borrowing costs post-pandemic.

Ben Merritt, Yorkshire Building Society’s director of mortgages, said it is encouraging that first-time buyer ratios are holding firm. 

“First-time buyers are the lifeblood of the market and are still clearly keen to buy,” he said.

“There is no doubt their aspirations are being hampered by the multiple factors at play, which have resulted in the market contracting by up to 30% this year, but still their numbers have only dropped by 21%.

“This demonstrates a positive ‘can-do’ sentiment with first-time buyers cutting their cloth in order to get on the housing ladder.”