Press release
First-time buyer activity up 45% in Q1 2025, L&G data reveals
Data from L&G’s Ignite platform points to a significant increase in first-time buyer searches for mortgages, including a rise in older buyers looking to step onto the property ladder for the first time.
9 Apr 2025
Full press release
- Broker searches for first-time buyers increased by 45% when comparing Q4 2024 to Q1 2025
- Searches for first-time buyers aged 18-30 increased by more than half (53%) across the same period
- Searches for first-time buyers aged 56-65 rose by 80%
New proprietary data from L&G’s Ignite platform shows a significant uptick in first-time buyer searches in Q1 2025, compared to Q4 2024.
Total searches for first-time buyers increased by 45%, with the 18-30 and 56-65 age categories seeing significant rises of 53% and 80%, respectively. This was followed by the 51-55 year old category, which saw a 44% increase, and the 31-40 year old category with a 37% increase1.
The uptick in first-time buyer searches in Q1 - which was sustained across all generational groups - may have been driven by the Stamp Duty Land Tax deadline on 31st March 2025. Buyers may have also taken advantage of the increased availability of sub-4% products to step onto the ladder.
A positive start to the year for the mortgage market
L&G’s Mortgage Services business is involved in nearly 1 in 4 of all mortgages in the UK and nearly 1 in 3 of all intermediated mortgages. Data from its Ignite platform therefore provides a robust market overview and highlights trends among UK borrowers to help advisers best serve their clients.
In terms of property values, data from the Ignite platform shows that the most searched range in Q1 was the £150k to £250k category, accounting for 39% of all searches – up from 36% in Q4 2024.
Meanwhile, the most searched Loan-to-Value (LTV) category for first-time buyers was the 91-95% range, making up 34% of total searches. However, over the same time frame, L&G also recorded a 43% increase in the number of first-time buyers searching for 51-55% LTV mortgages.
This may reflect an improvement in overall affordability, meaning the average borrower will be less overleveraged in Q1 2025 than the average borrower in Q4 2024.
Kevin Roberts, Managing Director, Mortgage Services, L&G: “A strong start to the year for first-time buyers is more than encouraging – it’s a positive sign of the market’s health as we head into spring, a traditionally busy period for property sales and new listings. Lower mortgage rates have been a feature of the first quarter of the year, with several major lenders now offering products at rates below 4%. Although the artificial stimulus of the lower stamp duty threshold is now over, the outlook is positive It’s great to see first-time buyers in a position where they can really engage with the market.
“There are plenty of options out there for first-time buyers, with some major lenders cutting rates exclusively for this group. We know that many buyers use financial gifts from loved ones, to secure their first home, but not everyone can rely on this support. If you’re starting your property search, seeking advice from a professional mortgage adviser is a must. Their expertise can lead you to the right mortgage product, which is a huge advantage when making what is likely to be the single biggest purchase of your lifetime.”
References:
1L&G’s Mortgage Services business accessed analytics drawn from its Ignite sourcing platform and compared broker search activity across age groups, LTVs, and property purchase value in Q4 2024 and Q1 2025. Once the data was sourced, L&G’s Mortgage Services Business was able to calculate the difference in the search volumes between Q4 2024 and Q1 2025 to show a variance in overall market activity that was processed through the Ignite sourcing platform.
Further information
