What’s the big story?
- Data shows a typical first-time home now costs about 5.9 times the average first-time buyer’s salary — down from 6.2 times at the end of 2024.
- On top of that, even though average first-time buyer house prices have risen slightly over the last year (by around 2.4 %), wages have increased faster (by about 6.2 %).
- So while homes are a bit pricier, many people’s pay is rising even more — meaning, overall, houses are more affordable relative to income.
What Has Actually Improved for First-Time Buyers
Lower income-to-price ration
Because the home-price to income ratio has dropped from 6.2 × to 5.9 ×, buyers may need a proportionally smaller deposit or fewer years to repay. This improves the financial attractiveness of buying over renting.
Monthly repayments now cheaper than renting (in many cases)
Lloyds estimates monthly mortgage payments for first-time buyers at around £1,087 — roughly £259 less per month than average rent, widening the gap between renting vs. owning. That makes homeownership more appealing — especially when long-term stability and a sense of “owning something” are considered.
More buyers teaming up to boost affordability
Lloyds notes that about 62% of first-time buyers are applying jointly — with a partner, friend or family member — combining incomes to make a mortgage more feasible.
But It’s Not Equally Easy Everywhere
The improved affordability doesn’t play out the same across the UK. Some regions remain much cheaper than others:
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In areas like Inverclyde, Scotland, the ratio of home price to income, for first-time buyers, is as low as ~3.4.
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In contrast metropolitan and prime areas — like London boroughs — remain very expensive: in some places, first-time buyer homes now cost over 17 times the average first-time buyer income.
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That means while national averages look encouraging, “on the ground” affordability can still feel out of reach in expensive zones. As Lloyds themselves caution — one town’s situation may be very different to the next
Should You Consider Buying Soon?
Up against recent market conditions, now really feels like a favourable window for first-time buyers — or first-time buyers who are willing to team up with someone else.
Pros:
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Houses cost relatively less vs incomes compared with recent years.
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Monthly mortgage payments may be lower than local rent in many areas.
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Joint applications (e.g. with partner, friend or family) improve income-to-loan ratio.
Things to check carefully:
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Local affordability varies substantially — even a “national average” good deal might be unaffordable depending on where you look.
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Ensure you can sustain repayments over time — even if monthly costs are lower now, unexpected rises in interest rates or living costs might affect long-term budget.
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Deposit size (or deposit + loan-to-value ratio) still matters — cheaper overall doesn’t mean “easy”.