Single first-time buyers face increasing struggle to get house of their own: Martese Carton

Today the figure is just 46 per cent - highlighting the real pressures single FTBs face when trying to get a foothold on the housing ladder.

With housing at its most unaffordable level for around 150 years, first time buyers are particularly impacted.

Rates of home ownership amongst 25 to 34-year-olds is currently around 41 per cent and has collapsed since 2003 when it stood at around 59 per cent.

According to recent data from UK Finance, the number of loans to first-time buyers fell in 2022 by around 9 per cent to 370,200 compared to 2021 – a year which had seen the highest level of FTBs since 2006.

But it is with singletons where the figures are the most alarming. The proportion of FTB loans taken out by single applicants fell in 2022 to 45 per cent, reversing the increase seen in 2021 when there was a temporary stamp duty holiday.

In 2006, singletons accounted for 53 per cent of all loans to FTB, but this proportion has fallen steadily as affordability issues continue to hit and currently stands at 46 per cent.

But there is some light at the end of the housing tunnel for first time buyers, particularly through the shared ownership scheme which allows borrowers to buy a share in the overall value of a home and pay a rent on the rest of it.

The scheme is particularly good at helping first-time buyers get on the housing ladder.

Leeds Building Society is the UK’s largest shared ownership lender as it continues to help more people become homeowners.

But shared ownership is especially important for singletons as it provides them with a much better chance to get on to the housing ladder. In 2021/22, around 56 per cent of shared ownership purchases were made by one adult households, versus just 29 per cent for FTB households in general.

The average deposit required for a shared ownership mortgage in 2021/22 was £20,800, compared to £43,693 on average for FTBs.

But as we approach the annual National Shared Ownership Week, it’s worth highlighting that singletons still face huge pressures in getting on the housing ladder due to insufficient new build houses being built.

Across England there were 210,070 new build properties built in 2021-22 of which only around 28 per cent were classed as affordable homes.

It’s estimated that over the next 15 years the UK will require five million new homes – an average of 340,000 new homes each year.

Unfortunately achieving this won’t be easy as it is greater than the Government’s current 300,000 ‘target’ which has not been achieved since 1971.

The average number of new homes delivered each year over the last decade has been less than half of this figure.

As the general election looms, solving the housebuilding problem by building more homes must be the focus for all the political parties.

Martese Carton is Director of Mortgage Distribution for Leeds Building Society.