The average age aspiring homeowners expect to get onto the property ladder is now 39 years old, HSBC UK’s annual ‘Beyond the Bricks’ survey has found.
This is 11 years older than the average age of those who are already on the property ladder who bought their first property.
Aaron Shinwell, interim head of mortgages and savings at HSBC UK, said: “It is a concern that the expectation of first-time buyers is that they will not be able to get on the property ladder until they are 40 years old, especially as more than half of those looking to get on the property ladder already have children to support.
“We’re committed to supporting first-time buyers so the old adage ‘life begins at 40’, doesn’t become synonymous with buying a first home.”
The survey also found that one in 10 aspiring homeowners have to join together with a friend or family member to get on the ladder, whilst more than half of those looking to buy their first home already have a family to support them.
Since January 2018, the average length of mortgage taken out by first-time buyers has increased by three and a half years.
First-time buyers are taking out mortgages for six years longer on average than those already on the property ladder, with the average LTV for first-time purchases increasing from 72% to 81% in under 18 months.
First-time buyers have saved an average of almost £3,500 before buying a property and getting the government bonus, with first-time buyers receiving an average of £866 as a Help to Buy ISA bonus.
Shinwell added: “It is encouraging to see recent figures showing that first time buyer activity is increasing.
“We have worked hard over recent years to provide first time buyers with options to help them buy a property, including introducing 95% LTV mortgages, increasing our maximum mortgage term to 35 years, and an attractive Help To Buy ISA interest rate.
“With the scheme no longer accepting new applications after November, opening an account before that could make a real difference to when a first-time buyer gets the keys to their first home.”