FTBs prioritise ‘forever homes’

In August, a third (33.5%) of FTBs bought a semi-detached property, up 1.7% when compared with the same month in 2024. Meanwhile, only 19% purchased a flat, representing a 2.7% annual decline. The most popular property type among new homeowners was three-bedroom properties, which accounted for 46% of all FTB purchases in August.

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Looking for the long-term
Historically, FTBs would enter the market by buying a smaller property, with the intention of moving up the ladder later. However, it seems that this trend is changing. Many new homeowners are aiming to purchase a longer-term home from the outset, rather than upsizing after a few years.

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Longer mortgages
To afford larger homes, FTBs are opting for longer mortgages, with 41.3% taking out a mortgage of at least 30 years in August. In fact, 37% of borrowers said that mortgages spanning 30 to 40 years are more appealing because it meant lower monthly repayments. However, repaying a mortgage over a longer period means paying more interest overall, increasing the total cost of borrowing.

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Your home may be repossessed if you do not keep up repayments on your mortgage

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