First-time buyers and home mover numbers increase by a third

Latest quarterly data from UK Finance has shown that the mortgage market strengthened in Quarter 4 (Q4)  2024, with both first-time buyers and home mover numbers up by almost a third compared to a year ago, with forward-looking data suggesting this will persist through the first quarter of 2025

The data found that overall, 2024 was considerably better for the mortgage market than many predicted. With rates offered in the market reducing through most of the year, we saw first time buyer numbers rise by 16.4 per cent and home movers rise by 14.7 per cent.

Some of the growth in the final quarter of the year, where both first time buyer and home mover numbers were up by almost a third compared to a year ago, is likely from borrowers looking to complete before the changes to Stamp Duty thresholds in April 2025.

Refinancing activity was down compared to last year, but higher volumes of expiring fixed rate deals will drive a stronger market in 2025 – 1.8 million fixed rate mortgages are due to expire in 2025, up from 1.4 million in 2024.

The data showed that overdraft debt was essentially flat through the year with credit card usage growing in line with long-term trends. Slightly less than half of balances are interest-bearing and credit cards are increasingly being used as a payment method rather than for borrowing.

Eric Leenders, Managing Director of Personal Finance, said “The final quarter of 2024 showed the resilience of UK households amid changing economic conditions, with mortgage lending showing strong growth and arrears continuing their downward trend. Consumer spending returned to growth for the first time in over two years and savings were up, with notice accounts proving popular.

“The regulatory review of mortgage lending rules, which are arguably restricting the number of people who can access mortgage lending, will be welcome news for aspiring homeowners. Reviewing these rules would help with affordability issues, not just for first time buyers but also those looking to move further up the housing ladder.”