Revealed: Average price of first-home in West Midlands as number of people stepping onto property ladder is on the rise

Halifax said there were 341,068 first-time buyers last year, up 19 per cent compared with 2023. The year 2023 saw first-time buyer numbers drop off by 22 per cent annually, in the tough mortgage rate environment.

Despite the rebound, last year’s estimated total was not as big as the 369,870 first-time buyers recorded in 2022.

The average deposit they are stumping up is £61,090, to buy a home valued at £311,034 typically. Halifax said the average first-time buyer is 33 years old, two years older than a decade ago when they were 31.

The bank said first-time buyers made up more than half (54 per cent) of all home purchases made with a mortgage last year. Nearly two-thirds (62 per cent) of mortgage completions last year were in two or more names, with 38 per cent starting on the property ladder on their own.

In the West Midlands, figures from Halifax show the average first-time buyer house prices in 2024 jumped to £255,373, compared to £241,034 in 2023.

The average deposit for a first property in the region has also increased from £38,708 in 2023 to £42,898 in 2024, according to the bank.

Meanwhile, the average age of first-time buyers in the West Midlands has increased from 30-years-old in 2014 to 33-years-old in 2024. 

The analysis by Halifax reveals the Shetland Islands have the youngest average first-time buyer at 27, while at the other end of the scale, Slough in Berkshire and Sutton, south London, have the oldest first-time buyers at 38 – five years above the UK average.

The bank said first-time buyers made up more than half (54 per cent) of all home purchases made with a mortgage last year. Nearly two-thirds (62 per cent) of mortgage completions last year were in two or more names, with 38 per cent starting on the property ladder on their own.

Amanda Bryden, head of mortgages at Halifax said: “Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023. This likely reflects an improvement in mortgage affordability as interest rates eased and stabilised, providing more certainty for those stepping on to the ladder.

“Many are still teaming up to make the numbers work, with most buying homes jointly. This makes sense given the average deposit of £61,090 and an average starter home price of £311,034, which can be a stretch for those with a single income. It’s not surprising the average first-time buyer is now 33 years old, the oldest in the last two decades.“

Despite the challenges of saving for a deposit and rising house prices – up 8 per cent in 2024 – it’s encouraging that first-time buyers still account for more than half of all new mortgages.

”The research was based on data from the Halifax’s own housing statistics database, figures from trade association UK Finance and official earnings data. 

Ms Bryden added: “Looking ahead we expect modest house price growth in 2025, but upcoming stamp duty threshold reductions won’t make things any easier in the short term for first-time buyers.”

The “nil rate” stamp duty band for first-time buyers will reduce from £425,000 to £300,000 from April 1. Stamp duty applies in England and Northern Ireland.

Matt Thompson, head of sales at London-based estate agent Chestertons, said: “In December 2024 as well as the beginning of this year, the property market saw particularly high demand from first-time buyers who were motivated to beat April’s stamp duty deadline.

“This spike in buyer activity led to the majority of properties exchange hands for the asking price, although some sellers, especially those in a rush to sell, agreed to enter price negotiations.”

Here are average first-time buyer house prices in 2023, followed by average first-time buyer house prices in 2024 and average deposits in 2023 followed by 2024, according to Halifax:

• West Midlands, £241,034, £255,373, £38,708, £42,898

• East Midlands, £240,456, £249,130, £36,836, £40,402

• East of England, £332,468, £346,523, £54,015, £56,526

• London, £492,687, £511,514, £109,278, £124,688

• North East, £179,415, £180,834, £30,567, £30,678

• Northern Ireland, £175,382, £194,323, £32,197, £37,898

• North West, £219,786, £230,161, £36,594, £39,574

• Scotland, £192,176, £200,356, £40,439, £43,537

• South East, £359,041, £367,974, £60,624, £61,744

• South West, £277,978, £291,362, £49,730, £55,083

• Wales, £203,927, £211,339, £37,709, £39,877

• Yorkshire and the Humber, £208,319, £210,578, £34,165, £36,731

Here is the average age of first-time buyers in 2014 followed by 2024, according to Halifax:

• West Midlands, 30, 33 

• East Midlands, 30, 32

• East of England, 31, 33

• London, 33, 34

• North East, 29, 31

• Northern Ireland, 30, 32

• North West, 30, 32

• Scotland, 30, 32

• South East, 31, 34

• South West, 30, 32

• Wales, 30, 31

• Yorkshire and the Humber, 29, 31

Here are the most affordable UK local authority areas for first-time buyers, according to Halifax, with the average house price-to-earnings ratio:1. 

• Inverclyde, Scotland, 3.22. 

• East Ayrshire, Scotland, 3.33. 

• West Dunbartonshire, Scotland, 3.4=4. 

• Na h-Eileanan Siar, Scotland, 3.5=4. 

• Clackmannanshire, Scotland, 3.56. 

• County Durham, North East, 3.6=7. 

• Argyll and Bute, Scotland, 3.8=7. 

• Fife, Scotland, 3.8=7. 

• Burnley, North West, 3.8=7.

• Isle of Anglesey, Wales, 3.8

Here are the least affordable UK local authority areas for first-time buyers, according to Halifax, with the average house price-to-earnings ratio:1. 

• Hammersmith and Fulham, London, 10.22.

• Hillingdon, London, 9.9=3. 

• Haringey, London, 9.6=3. 

• Hounslow, London, 9.65. 

• Harrow, London, 9.56. 

• Waltham Forest, London, 9.4=7. 

• Camden, London, 9.3=7. 

• Oxford, South East, 9.3=9.

• Hackney, London, 9.2=9. 

• Tandridge, South East, 9.2