TSB surveyed over 1,000 first-time buyers who had bought a property in the past year – and found that compromise and location are key, as three-quarters (75%) of new property owners opted for fewer bedrooms, a smaller property and less outdoor space to buy in a preferred postcode.

Almost two-fifths (38%) said their new home was mostly what they wanted, but with a few compromises. Over a fifth (22%) said they had purchased their dream home. Almost one in 10 (9%) said they had made a major compromise and opted for affordability and location.

TSB found that almost every first-time buyer (96%) surveyed was offered some form of financial help with their deposit – with over two-thirds (68%) receiving help from family members, while almost three-fifths (57%) received help from friends – which TSB’s Craig Calder says is an “increasing trend”.

To get on the ladder, almost two-fifths (38%) had delayed major purchases, limited socialising (37%) and took on a second job (37%).

On average, polling showed that first-time buyers saved for almost three (2.95) years; with those in Wales taking the longest to save up (3.39 years) and those in the East Midlands saving up the quickest (2.56 years).

On average, first-time buyers were paying £960 a month in rent prior to purchasing their home.

As a result of buying their first home, 45% felt financially more secure. Almost two-fifths (39%) felt relieved.

TSB customer data also shows that first-time buyers are taking out 31-year terms on average – down from 32 in 2024. The average deposit size in the UK is 18.9% – with London the highest, at 23%, compared to Wales (13%). 

Overall, the average age of first-time buyers is 32, up from 31 in 2024. The regions with the oldest first-time buyer age are London (34), the South East (33) and East Midlands (33). At the other end of the scale, Yorkshire & The Humber has the youngest average age, at 30. In Scotland, the average is 31.

Craig Calder, director of secured lending at TSB, said: “It’s clear that compromise is key to getting on the housing ladder in a preferred location – with most first-time buyers forgoing a dream home but feeling relieved, and more financially secure having made the move.  

“Many made sacrifices to meet their deposit targets – such as moving in with parents, and taking a second job. To secure the best deal for your housing and affordability needs, do speak with a broker, or your bank.”

Responding to the survey, Mary-Lou Press, NAEA Propertymark president, said: “This has been a growing trend for some time, indicating how expensive it is for first-time buyers to get onto the housing ladder, so much so that they have to make enormous sacrifices and/or depend upon financial help from their relatives just to purchase a property.

“What is needed to make housing more affordable is targeted help, and we are seeing many financial institutions take a lead here with flexible mortgage products, as well as a sustainable supply of new homes that will stabilise supply and demand levels, which can hopefully be achieved by the UK Government and the devolved administrations meeting their individual housing targets.”