UK housing market sees rise in mortgage sales driven by first-time buyers

The UK housing market saw increased activity in 2025, with 717,519 mortgage sales recorded, the highest annual total since 2021. However, data from the Office for National Statistics indicates that the market is increasingly driven by first-time buyers, who accounted for 52.8% of sales in 2025. This marks a significant shift from 2006, when second and subsequent buyer mortgages were more than twice as common as first-time buyer mortgages.

First-time buyers are increasingly relying on higher loan-to-value ratios. The median ratio rose from 85.0% in 2024 to 85.6% in 2025. Regional variations are notable, with Scotland recording a median ratio of 89.7% and the North East of England at 89.8%.

In Manchester, the property market shows resilience despite broader national trends. While national house price growth has slowed, Manchester remains an attractive area due to strong rental demand and regeneration projects. In Manchester, the average price paid by first-time buyers was approximately £232,000, compared to £286,000 for home-movers. Rental prices in the city have also seen growth, with average rents reaching roughly £1,358 per month.