Mortgage broker Mojo Mortgages has conducted an eye-opening analysis revealing the stark challenges first-time buyer couples face today compared to those who entered the housing market 50 years ago, in 1974.
The findings highlight how rising property prices and deposit requirements, coupled with stagnant salary growth, have reshaped the landscape of homeownership, making it a much tougher journey for today’s buyers.
Key statistics: A comparison of 1974 vs. 2024
| Average | 1974 | 2024 | Difference |
| Property price | £10,027 | £265,012 | +2,542% (+£254,985) |
| Joint salary | £3,567 | £67,288 | +1,791 (+£63,721) |
| Deposit amount | £537 | £58,303 | +10,757% (+£57,766) |
| Deposit as a % of a joint salary | 15.05% | 86.65% | +71.60% |
| Time to save for the deposit | 3 months | 11 years, 3 months | +11 years |
| Age of a first-time buyer | 26 years old | 33 years, 8 months | +7 years, 8 months |
House prices have skyrocketed by 2,534% since 1974
The average house price has jumped from just £10,027 in 1974 to an astonishing £265,012 in 2024. This represents a massive increase of 2,534%, while salaries have only risen by 1,791% during the same period.
This gap shows just how difficult it is for first-time buyers to keep up with rising property costs. In fact, if house prices had risen in line with stagnant salary growth, the average home should cost £189,100 – that’s £75,912 less than today’s average.
The average deposit now takes an extra 11 years to save for
When it comes to saving for a deposit, today’s first-time buyers are facing a tough reality. In 1974, a couple needed only 15.05% of their combined income for a deposit, with the average deposit averaging £537.
Fast forward to 2024, and that figure has surged to an overwhelming 86.65%, with the average first-time buyer now saving 22% of the house price and, therefore, requiring £58,303.
This has impacted the time it takes to save for a deposit; in 1974, couples could save a deposit in three months by setting aside 20% of their salary. However, today, the same savings process would take 11 years and 3 months.
The average age of a first-timer has increased to 33 years and 8 months
The average age of first-time buyers has steadily increased over the decades. In 1974, it was just 26 years old, but now it stands at 33 years and 8 months. This trend reflects the longer time needed to overcome financial hurdles and save for a home.
Despite the challenges, first-time buyer activity is up 21% in 2024
Despite the challenges outlined in our analysis, homeownership is still achievable for many first-time buyers.
Mojo Mortgages’ research shows that first-time buyer activity is up by 21% in 2024 compared to the previous year. While the path to homeownership may seem longer than it did for previous generations, it remains within reach for many people—and it can be for you too.
Expert comment from Mojo Mortgages’ Head of Mortgages
John Fraser-Tucker, Head of Mortgages at Mojo Mortgages said: “While our analysis reveals the significant hurdles first-time buyers face today compared to 50 years ago, the 21% increase in first-time buyer activity is truly heartening. It speaks volumes about the resilience and determination of today’s home seekers.
“Despite longer saving periods and higher deposit requirements, many are finding innovative ways to step onto the property ladder. This could be through shared ownership schemes, help from family, or other first-time buyer-related schemes. The journey may be longer, but it’s clear that the dream of homeownership is still very much alive.
“With access to 1000s of products and over 70 lenders, we’re committed to supporting these aspiring homeowners every step of the way, helping them navigate this changed landscape and turn their homeownership dreams into reality.”
