Nearly two-third of first time buyers are entering the property market with someone else, a new report by Halifax has found.
Over 60 per cent of mortgages taken out by first time buyers between January and December last year were taken out in joint names.
House prices for first-time buyers remain over £132k more expensive than ten years ago, with the cost of a home coming in at around £288k last year.
Despite prices being five per cent lower than the prior year, the overall number of first-time buyers fell by 21 per cent to 293,339 in 2023.
In London, this widened to 23 per cent as prospective buyers struggled to afford homes in the capital.
While house prices fell in 2023, they still remained around £40k more expensive than before the pandemic.
This, coupled with above average mortgage rates and wage stagnation, has limited renters’ ability to buy a home.
Halifax said average property values for first-time buyers are now around 6.7 times the average UK salary (£43,257).
Kim Kinnaird, director at Halifax Mortgages explained: “The overall fall in house prices we saw in 2023 will go some way to helping people get on the ladder for the first time.
“But these buyers are still dependent on a steady supply of properties in their price range, while they are faced with the continued pressure of saving for a deposit, when rent and living costs are high.”
She added: “There are a number of schemes available to support first-time buyers, like the mortgage guarantee scheme, which allows us to offer up to 95 per cent mortgages to first-time buyers and has been extended until June 2025.
“Alternatively, the First Homes scheme offers discounts on new-build homes to first-time buyers, while shared ownership options allow new buyers to purchase some of the property and rent the rest.”