Official statistics reveal that first-time buyers made up more than half of UK mortgage sales last year, compared to around a third two decades ago.
Office for National Statistics figures published today show that first-time buyers made up 52.8% of mortgage sales in 2025, compared to 33.8% in 2006.
Overall, there were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024 and the highest annual total since 2021.
However, total mortgage sales were about 34.5% below 2006 levels.
Mortgage loan-to-value (LTV) ratios rose across most of the UK in 2025, continuing a trend seen since the pandemic.
The average loan-to-value ratio increased from 79.6% in 2024 to 80.3% in 2025.
For first-time buyers, the average LTV reached 85.6% in 2025, its highest level since before the 2008 financial crisis.
“While the recovery in mortgage activity through 2025 is encouraging, perhaps the most notable trend is how the shape of the market is changing,” says Ian Futcher, financial planner at Quilter.
He says the growth in the share of first-time buyers shows how dependent the housing market is on new entrants.
“The housing ladder is still attracting new climbers, but far fewer people are taking the steps once they are on it,” Futscher adds.
“Activity among current homeowners remains well below historical levels, indicating that many people are choosing to stay in their homes longer rather than move.
“First-time buyers also have to put in more effort to get on the property ladder.”
“Mortgage activity has shown clear signs of recovery in 2025, with sales reaching their highest annual level since 2021 as buyers return to the market after a period of rising interest rates and affordability pressures,” says Richard Bench, Broadstone senior director.
“The mortgage market has undergone a major structural shift, with first-time buyers playing an increasingly central role in driving activity.
“This reflects the changing dynamics of home ownership, with new buyers remaining a major source of demand despite affordability challenges in recent years.”
