The number of first-time homeowners over the age of 50 has increased by 30% in the past 5 years, according to mortgage specialist Tembo.

Analysis from Tembo showed that there were 12,000 first time buyers (FTBs) over the age of 50 in 2022 making it one of the fastest growing segments of the first-time buyer market.

The overall number of first-time buyers has grown by around 1% on average each year since 2018, with 360,000 in total in 2022.

Data from the Financial Conduct Authority also showed that the number of younger FTBs particularly those aged under 30 is in decline, while the number of older first-time buyers aged over 40 has been growing by over 7% each year since 2018.

There is a significant regional variation in the proportion of FTBs aged over 50 in the UK, according to Tembo.   

London has the lowest proportion with 2.4% of FTBs aged over 50. The South West has the highest proportion with 3.5% FTBs aged over 50 – 44% more than in London. 

Although London currently has the lowest proportion of over 50s first time buyers, it is the fastest growing region. Total FTB purchases increased by 22% from 2018 to 2022 but over 50’s grew by 64% over the same period in London.

In Scotland and the West Midlands, total FTB numbers have declined from 2018 to 2022.

Despite this overall decline, the number of FTB’s over the age of 51 has sharply increased in these regions – 8% in Scotland and 22% in the West Midlands.

In every region across the UK, growth in over 50’s FTBs has outstripped total FTB growth.

Tembo has developed a projection, based on these recent growth trends, for first-time buyers by age in 2030. 

Assuming total FTB numbers remain broadly flat at the five-year annual average total of 360,000, by 2030 there will be 89,000 FTBs aged over 40. This equates to one in four of all first-time buyers.  

For FTBs aged over 50, it is forecast that the number will increase from 12,000 in 2022 to 19,000 by 2030, equating to 5% of total first-time buyers.

There are four key drivers, according to Tembo, which have led to an increasing number of people buying their first home later in life. 

They include the following: saving for a deposit is taking longer, the housing affordability crisis in the UK has increased, support from either a buying scheme such as Help to Buy or shared ownership or from family or friends, and an increasing number of mortgages that run into retirement. 

Tembo founder and chief executive Richard Dana said: “A perfect storm of factors impacting first time buyer affordability means we’re now seeing a sharp rise in the number of people waiting until they’re aged 50 or over before they buy their first home. This is presenting a challenge to both the financial services industry and would-be home buyers, with many traditional high-street lenders not offering extended mortgage loan terms beyond the age of 75.”