Back

First Time Buyer Report 2026

Jul 13, 2026
FTB's
Buying a first home is an exciting milestone, but with changing market conditions and more options available than ever, it’s important to understand what to expect.

 

To uncover the state of play, we’ve created our 2026 First Time Buyer Report using the latest data from the Office for National Statistics (ONS), government housing reports, and a survey of 660 prospective UK first time buyers. 

 

We have also enlisted the help of mortgage expert and The New Homes Group Managing Director, Terry Higgins, to ask for his thoughts on the report’s findings.
 

How do first time buyer deposits differ across the UK?


By analysing UK House Price Index data, we revealed the average regional deposit and house price for each region of the UK.

 

 
 

 

Scotland is the UK region with the lowest average first time buyer deposit, at £25,800, compared with an average house price of £156,662. This equates to an average loan-to-value (LTV) ratio of around 86%. 

 

Despite having a slightly higher average first time buyer deposit than Scotland, the North East of England has the lowest average first time buyer house price at £144,674.

 

On the other end of the spectrum, first time buyers in London are, on average, putting down a deposit of £132,200, which is the highest in the UK and almost double what first time buyers in the South East are paying (£67,400), which has the second-highest house prices after the capital.

 

Where are England and Wales’ most affordable homes for first time buyers? 

 

As well as investigating first time buyer deposits across the UK, we further analysed ONS data to home in on the most affordable parts of England and Wales for first time buyers.

 

The data below just includes England and Wales, as the ONS does not collect data on Scotland and Northern Ireland. 

 
Coming in as the most affordable location was Burnley, with first time buyer homes in the Lancashire town going for £116,000 on average, 63% less than the UK average of £311,034^ (including London).

 

County Durham is the second most affordable location, with an average of £125,000, while Hyndburn was just behind in third place at £127,000.

 

The North West had the most locations in the top ten, with four, while the North East had three. Wales had two, and Yorkshire had one.

 

There were no locations in the South or Midlands of England that appeared in the top ten. In fact, the cheapest area in the Midlands was Bolsover in 32nd place, while in the South, Plymouth was the most affordable, though it ranked as low as 82nd.

 

What sources of information are first time buyers using?

 

When navigating the housing market for the first time, new buyers have a wealth of knowledge available to them and more ways than ever to find it. But which sources of information are they turning to most?

 

We surveyed 660 prospective first time buyers to ask where they are turning for mortgage advice.

 

 
 
68% said they would turn to a mortgage broker as a key source of information, meaning almost a third of first time buyers would look elsewhere for guidance.

 

Speaking on the results, Terry said, “Almost a third of homebuyers say they would turn to other sources of information instead of using a mortgage broker. Online research and advice from friends and family can be helpful. However, brokers play a key role in securing the correct mortgage deal for you, and  in helping you to prepare for a mortgage application to give you the best chance of it being successful. A good mortgage broker will hold your hand and guide you through the whole home buying process. They have in-depth knowledge of lenders and their criteria and can often access deals that aren’t available directly to consumers, which is particularly valuable for those on a tighter budget or with smaller deposits.”

 

As AI continues to reshape how people access information, the survey also found that one in five first time buyers would now trust AI chatbots for mortgage advice. In contrast, social media was the least preferred source, with just 7% saying they would use it.

 

The data also suggests that while AI is now a key source of information for first time buyers, Brits are still overwhelmingly choosing to trust human advice from family and friends over AI-generated guidance. 

 

The biggest challenges for first time buyers

 

To find out what first time buyers thought they would struggle with the most, we also asked what they felt were going to be the biggest challenges they may face along the way.

 

 
 
Finding a home within budget was the clear number one concern among respondents, cited by 33%, making it the biggest challenge in the homebuying process. Only 8% said they felt finding a home they liked would be their biggest challenge, suggesting that cost is a far greater concern for first time buyers than the property itself.

 

Saving for a deposit was also a big concern as 31% said it would be the biggest challenge they face. Steve Mariner, Sales and Marketing Director at Barratt Homes, explains how schemes designed to support buyers can help make saving for a deposit feel more achievable. 

 

He said, “Saving up for a deposit can feel like one of the biggest barriers to owning a home, but there are schemes that can help. For example, our Deposit Boost scheme will match a 5% deposit up to £25,000, meaning you can still secure a 90% LTV mortgage with just 5% saved.”

 

Reddit’s most-asked first time buyer questions

 

Our survey revealed that 64% of first time buyers would trust online searches as a key source of information for finding mortgage advice, and Reddit is becoming an increasingly important online source of advice. 

 

In fact, the social media platform is now the UK’s sixth most popular website with 218 million monthly visits, ahead of the likes of Wikipedia and ChatGPT on 197 and 184 million respectively*.

 

So, to find out what questions homebuyers are asking on Reddit, we analysed over 3,500 UK-based Reddit comments to uncover the most frequently asked mortgage questions.

 

To help answer them, we asked Terry to respond to the most common questions.

 

 
1. What rights do you have if you contribute financially to a home but aren’t on the deeds?

 

“If you contribute financially to a home, you may still have rights to some of the proceeds of the property if it is ever sold – even if you aren’t named on the deeds. This would be through beneficial interest, which refers to the fact that someone may have contributed financially to the property. It’s important to seek independent legal advice in this instance and keep records of any financial contributions to the mortgage or deposit, as well as any money spent on refurbishment.”

 

2. How do first time buyers actually get onto the property ladder in today’s market?

 

“While it can seem like it’s far off, there are many measures that can help you on your way to buying your first home. Low-deposit mortgage options are becoming an increasingly popular way to get on the ladder, with deposits for as little as 5%, and there are a wide range of homebuying schemes available to help support first time buyers. Although you have to meet certain criteria, there are even a handful of zero deposit schemes available.  A good place to start is by speaking to a lender or mortgage broker as early as possible in your home buying journey to better understand your options.”

 

3. How much can first time buyers realistically borrow based on their income?

 

“On average, a first time buyer can borrow between 4 and 5 times their household income. However, this figure also depends on several factors beyond income. Expenses, savings, debt, and employment status can all influence how much a lender is willing to offer, as they need to ensure you can comfortably afford the monthly repayments. While some schemes allow borrowing above 5 times your income, these are typically dependent on how stable your finances are.”

 

4. Why can a final mortgage offer be lower than an agreement in principle?

 

“For many buyers, the first step towards getting a mortgage is securing an agreement in principle. However, this is not a full mortgage offer and is only an initial indication of how much a lender may be willing to lend. A formal offer will only be made once your circumstances have been fully assessed. If your final offer differs from your agreement in principle, it is important to speak to your lender to understand why and what steps you can take next.”

 

5. What are the risks of taking out a mortgage for someone else, such as a family member?

 

“Taking out a mortgage on someone else’s behalf can be risky, as you remain fully responsible for the repayments. If the beneficiary is unable to keep up with payments, the liability falls to you. It’s therefore essential to seek advice from a lender and ensure you have a clear understanding of your own financial position before proceeding.

 

“There are schemes like The Bank of Family, where contributions from friends or relatives can help support a purchase without taking on the full level of risk.”

Available support for first time buyers

There are many different schemes from both mortgage providers and housing developers, however, data from the homeowner study found that one in five first time buyers lack awareness of these affordable home ownership schemes.

 

Barratt Homes offers a range of support schemes to help first time buyers purchase their first home:

 

Own New – Rate Reducer
 
This scheme is available on new-build homes and could mean lower mortgage rates and reduced monthly payments for both first time buyers and existing homeowners.
Depending on the build stage of your chosen home, we could contribute either 3% or 5% of the purchase price towards your move. This could reduce your mortgage interest rate by up to 3.19%.

 

First Homes Scheme

 

This is a government-backed scheme designed to help first time buyers own their own home in England. Under the scheme, homes are offered for sale with a discount of at least 30%, all the way up to 50% of market value.

 

Deposit Boost

 

If you have a 5% deposit, we could boost it by funding up to an additional 5% of the sale price - up to a maximum of £25,000, giving you a 10% deposit in total. This means you need to borrow less from a lender and could even secure a more competitive mortgage rate.

 

Bank of Family

 

With our Bank of Family scheme, if you’re getting financial support from your family or friends to help you get on the property ladder, we could match it up to a maximum of £25,000 of the purchase price. 

 

Ready to take the first step to owning your dream home? Explore Barratt’s range of new homes and available low deposit schemes to turn your home ownership aspirations into a reality.

Methodology

Barratt Homes surveyed 660 prospective first time buyers using survey platform One Pulse.

 

Average first time buyer purchase prices by region were proxied using UK House Price Index regional data (as the most consistent official dataset), combined with evidence from UK Finance on typical first time buyer loan-to-value (LTV) ratios. 

 

3,591 UK Reddit comments were scraped and analysed to find the most commonly asked questions for UK homebuyers.

 

*Data collected 01/052026 - https://www.semrush.com/trending-websites/gb/all

 

^https://www.lloydsbankinggroup.com/media/press-releases/2025/halifax-2025/first time-buyer-market-rebounds.html
 

Related Articles