Acre’s new data suggests that first-time buyers are expanding further as borrowing increases do not keep up with home prices.
Analysis of 14 million affordability searches by mortgage platforms in the first half of 2025 shows first-time buyers When they borrowed an average of £227,717, they borrowed an average of £240,299, up 5% in 2024.
Although house prices rose 6.7%, according to national statistics in May.
This means their loan-to-value ratio is falling, despite significant regional changes.
Acre’s analysis also shows that the average loan for interest-only borrowers is £343,000 than the loan that chooses to repay, while the average price for that loan is £238,000.
Today’s data also suggests that there is a large North-South gap between first-time home buyers.
The highest loan-to-income figures are the highest in London and the Southeast, but there are now more rural and small town pockets than the surrounding areas, such as Harrogate, Wick, Orkney, Falkirk, Shrewsbury and Powys, which are now expensive compared to the surrounding areas.
“Our findings raise the cruel affordability challenges faced by many first-time home buyers, and are forced to borrow more, especially in areas with strong job markets and emerging and expensive rural areas.
“Brandants have been providing clients with these choppy affordable waters and taking responsibility for ensuring the most appropriate mortgage without putting any inappropriate pressure on them.”
