For years, renting has been seen as the easiest and most accessible option for those unable to afford a home of their own. But the UK housing market is undergoing a dramatic shift, with first-time buyers (FTBs) now taking the largest share of mortgage lending on record. According to the latest data from the Bank of England, first-time buyers accounted for 29.6% of all mortgage lending in the final quarter of 2024—the highest since records began in 2007. This represents a clear turning point in the property market, with more people choosing to escape the rental trap and secure a place of their own.
The reason behind this surge in first-time buyer activity is clear: buying a home is now cheaper than renting in many parts of the UK. As rents continue to skyrocket and mortgage rates fall, the financial argument for homeownership has never been stronger. And at Quick Mortgages, we’re helping more first-time buyers than ever before secure the best mortgage deals to make that leap onto the property ladder.
Buying vs Renting: What’s Changed?
For much of the past decade, homeownership seemed out of reach for many due to rising house prices and the tightening of mortgage affordability rules. But the landscape has shifted dramatically over the past two years.
At the start of 2025, the average monthly mortgage payment for a first-time buyer was £1,038, compared to an average UK rent of £1,248 per month. That’s a 20% saving per month for those who take the plunge into homeownership.
This shift has been driven by three major factors:
- Rising rental costs – In the 12 months to January 2025, UK private rents surged by 8.7%, as landlords passed on their higher costs to tenants.
- Slower house price growth – UK house prices only rose by 4.6% in 2024, meaning property remains relatively affordable compared to previous years.
- Falling mortgage rates – Interest rates have steadily declined since mid-2023, making home loans more affordable for buyers.
This means that, for the first time in years, buying a home is the more cost-effective choice—not just in the long term, but even on a month-to-month basis.
How Can Quick Mortgages Help First-Time Buyers?
At Quick Mortgages, we understand that stepping onto the property ladder can feel daunting. But with mortgage rates now lower than many rental costs, we’re here to help first-time buyers navigate the mortgage market and find the best deal—completely fee-free.
We work with a wide range of lenders, including major banks and specialist mortgage providers, to secure the most competitive mortgage rates for first-time buyers. And because we charge no broker fees, you save money right from the start.
Whether you’re looking for a low-deposit mortgage, a fixed-rate deal, or a lender with flexible affordability criteria, our team at Quick Mortgages is here to make the process smooth and stress-free.
Why Are Landlords Selling Up?
Another key factor driving the increase in first-time buyer activity is the mass exit of landlords from the buy-to-let sector. The share of mortgage lending for buy-to-let purchases remained at just 8.2% at the end of 2024, barely above the record low of 7% in late 2023.
Many landlords are choosing to sell due to a combination of:
- Higher mortgage costs – Buy-to-let mortgages are less competitive than residential mortgages, making it harder for landlords to turn a profit.
- Tougher regulations – Changes to Energy Performance Certificate (EPC) rules mean landlords must invest in costly upgrades to meet stricter efficiency standards.
- Increased taxes – Recent tax changes, including reductions in mortgage interest tax relief and adjustments to capital gains tax, have made buy-to-let less financially appealing.
- Greater tenant protections – Proposed legislation, such as the Renters’ Reform Bill, could make it harder for landlords to evict tenants, adding further uncertainty.
As landlords exit the market, their properties are being snapped up by first-time buyers—especially homes that were previously rented out as starter flats or smaller houses.
This trend is creating a unique window of opportunity for buyers looking for properties in high-demand rental areas. If you’re thinking about buying in 2025, now is the time to act before prices potentially rise again.
Are Mortgage Lenders Making It Easier for First-Time Buyers?
Lenders have recognised the growing demand from first-time buyers and have introduced several measures to make mortgages more accessible:
- Longer mortgage terms – Many lenders now offer 35 to 40-year mortgages, which lower monthly repayments and make homeownership more affordable.
- Eased affordability tests – Mortgage providers have relaxed some criteria to help more buyers qualify for loans.
- Low-deposit options – 5% deposit mortgages are more widely available, and some lenders are even offering no-deposit mortgages in certain cases.
At Quick Mortgages, we specialise in helping first-time buyers find the best mortgage deals, even if they have a small deposit or unique financial circumstances. Our advisors work quickly to compare deals and guide you through the process without any hidden fees.
Is the Mortgage Market Stable?
Despite concerns about economic uncertainty, the proportion of mortgages in arrears remained steady at 1.3% in the final quarter of 2024. This suggests that borrowers are adapting to the current mortgage rate environment and managing their repayments effectively.
This stability reassures first-time buyers that now is a good time to secure a mortgage, with lenders actively competing for new business and offering attractive deals.
What Does This Mean for First-Time Buyers in 2025?
With rental prices continuing to climb and mortgage rates remaining competitive, the window of opportunity for first-time buyers is wide open. The combination of more affordable mortgages, increased housing supply from landlord sales, and lender incentives means that those looking to buy a home have a stronger position than ever before.
At Quick Mortgages, we are dedicated to helping first-time buyers navigate the mortgage process with ease. We compare the market, secure the best rates, and never charge broker fees, making homeownership more accessible than ever.
If you’re considering buying in 2025, don’t wait—get in touch with Quick Mortgages today and take the first step towards owning your own home.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
