These computer-generated images reveal the evolution of the average first-time buyer’s home over the decades.
From the beginning of this decade, the typical first home has been a two-bedroom flat, featuring two bathrooms and six rooms in total, without a garden, priced at £215,699.
From the beginning of the 2020s, the typical first home has been a two-bedroom flat, featuring two bathrooms and six rooms in total, without a garden, priced at £215,699.
However, back in the 1970s, the standard property was a two-bed, semi-detached house, with people remembering paying a mere £19,309. When adjusted for inflation, that would be equivalent to £92,172.55 today. With that, the amount required to borrow for a first home has seen a significant increase.
In the 1970s, individuals reported their first-time mortgages averaged at £11,149 – or £52,220.75 in 2024 when taking inflation into account. But according to data from Yorkshire Building Society, that figure now stands around £200,000.
Moreover, even though first-time buyers seem to be downsizing their expectations to smaller properties – with less room and minimal or no outdoor space – first homes now cost 6.04 times the average income of £35,724.
This is a stark contrast to around 2.69 times the typical UK salary back in the 1970s.
Additionally, the average 10% deposit is much more challenging to accumulate today, standing at £20,000 – more than half of the usual annual earnings – making it one of the most significant obstacles to homeownership.
Yorkshire Building Society’s mortgage expert Ben Merritt has acknowledged the struggles faced by aspiring homeowners, stating that: “Achieving homeownership isn’t easy.”
He highlighted the stark reality of soaring house prices, which has forced Britons to take on larger mortgages relative to their income, pricing out some from ever owning a home. The building society is actively seeking solutions and is offering first-time buyers the opportunity to purchase properties up to £500,000 with a deposit of just £5,000.
Merritt explained: “We know that house price growth means people are having to borrow much more than their incomes to get on the property ladder, and for some it’s now, sadly, completely out of reach.We want to do our bit to make sure everyone who wants to own their own home has a fair chance of fulfilling their dream.”
Interestingly, although properties purchased since the 1970s still boast a similar number of bedrooms, housing trends have shifted dramatically. While terraced houses were popular in the 1980s, semi-detached homes with driveways took over in the 1990s.
Fast forward to today, flats are now the most sought-after property type, accounting for 28% of first-time buyer purchases. The dream of owning a home with a lush garden is withering away, as recent figures reveal that only 66% of homes now come with green space, a stark drop from the 85% in the 1970s.
Moreover, the average age for first-time buyers has risen from 24 to 30 years old.
In the ’70s and ’80s, affordability was key for 73% and 72% of homebuyers, respectively. Fast forward to today, and the emphasis has shifted, with only 47% prioritising affordability, while 29% are more concerned about securing a large mortgageup from just 11% in the ’80s.
Yorkshire Building Society’s research, conducted through OnePoll, highlights a growing frustration with red tape in the home-buying process, with complaints rising from 11% in the ’70s to 27% today.
Ben offered his perspective, noting: “It’s clear from the research that some of the factors behind people’s choice of first home have remained stable, like location and how short their commute will be.”
He further commented on the increasing challenges faced by prospective homeowners: “However, there is growing frustration at how difficult it is to raise a deposit and get on the property ladder, thanks to above-inflation house price rises and ongoing cost-of-living pressures, pushing this prospect further and further out of reach.”
He concluded by saying, “It just goes to further highlight the scale of the challenges today’s generation of first-time buyers must overcome now to get a look-in, despite being willing to compromise on quality-of-life aspects like having a garden.”
“We firmly believe their aspiration and hard work should be rewarded, which is why we will continue to look at innovative solutions to help them bridge the ever-increasing gap, and to call for industry-wide change aimed at improving the prospects of first-time buyers, via our Home Truths report
