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Blog First-Time Home Buyers: How to Buy Your First Home with Rent to Buy

17 Mar 2025

First-Time Home Buyers: How to Buy Your First Home with Rent to Buy

How much of a home deposit do you need in 2025?

First-Time Home Buyer in the UK?
Here’s How to Get on the Property Ladder

How much of a home deposit do you need in 2025?

Buying your first home is a major milestone, but with rising house prices and increasing deposit requirements, it can feel out of reach. In 2024, the number of first-time buyers increased by 19% compared to 2023, reaching 341,068. However, affordability remains a challenge, with buyers needing an average deposit of £61,090 and properties costing £311,034.

First-Time Buyer Market Growth

According to Halifax, first-time buyers now make up 54% of all mortgage-backed home purchases, the highest proportion ever recorded. However, affordability pressures mean that more buyers are teaming up—62% of first-time buyers purchased jointly, while 38% bought alone, a slight increase from 2023.

House Prices and Deposits on the Rise

Despite an increase in first-time buyers, affordability continues to be a major hurdle. House prices rose 8% in 2024, and deposits are now 20% of the property price on average. Buyers today need £7,500 more for a deposit than they did in 2023.

First-Time Buyers Are Getting Older

The average first-time buyer is now 33 years old, two years older than a decade ago and the oldest in two decades. Across all UK regions, the typical first-time buyer is now at least 31 years old.

Where Can First-Time Buyers Afford to Buy?

House prices vary significantly across the UK, making some regions far more affordable than others. The most budget-friendly locations are in the North, while London and the South East remain the most expensive. Here is some key regional data:

First-Time Buyer Market Growth by Region

All UK regions saw an increase in first-time buyers in 2024. The biggest growth was in East Anglia and the South West, both up 22% compared to 2023. Over the past decade, Northern Ireland (+25%) and Wales (+20%) have led first-time buyer growth, while London was the only region to see a decline (-8%).

How HomeNow UK’s Rent to Buy Scheme Can Help

For many, saving for a deposit while renting is the biggest challenge. HomeNow UK’s Rent to Buy scheme offers an innovative solution, allowing buyers to build equity while renting.

How It Works

  • ✔ Choose Any Home: Select from any property for sale in England or Wales, rather than being limited to rental listings.
  • ✔ Fixed Rent for 5 Years: No unexpected rent increases—providing stability and peace of mind.
  • ✔ Build Your Deposit Over Time: A portion of your rent contributes to your home purchase.
  • ✔ Personalise Your Home: Unlike traditional rentals, you can decorate, renovate, and truly make it your own.
  • ✔ Seamless Transition to Ownership: After 5 years, you can purchase your home using the deposit you’ve built up.

Why Rent to Buy Makes Sense in 2025

The average first-time buyer home now costs 6.6 times the average UK salary (£46,970). In high-cost areas like London, that ratio jumps to over 10x salary. HomeNow UK provides a solution for those struggling to save while renting, making homeownership possible without needing a large upfront deposit.

First-Time Buyer Affordability Breakdown

The most affordable place to buy a home is County Durham, where properties cost just 3.6 times the average local salary. In contrast, first-time buyers in Hammersmith and Fulham face house prices that are 10x their income.

Get Started with a Free Consultation

HomeNow UK is making homeownership more accessible for first-time buyers. Don’t let high house prices hold you back—start your journey today!

Apply Today Book a Consultation

Data and insights sourced from Lloyds Banking Group and official UK housing market reports.

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