First-time buyers accounted for more than half of UK mortgage sales last year, up from around a third two decades earlier, official statistics reveal.

Office for National Statistics figures published today show that first-time buyers made up 52.8% of mortgage sales in 2025, compared with 33.8% in 2006.

Overall, there were 717,519 mortgage sales across the UK in 2025, up from 617,295 in 2024 and the highest annual total since 2021.

However, total mortgage sales were around 34.5% below 2006 levels.

Mortgage loan-to-value (LTV) ratios increased across much of the UK in 2025, continuing the trend seen since the pandemic

The median LTV edged up from 79.6% in 2024 to 80.3% in 2025,

For first-time buyers the median LTV reached 85.6% in 2025, its highest level since before the 2008 financial crisis.

Quilter financial planner Ian Futcher says: “While the recovery in mortgage activity during 2025 is encouraging, perhaps the most notable trend is how the shape of the market has changed.”

He says the growth in the share of first-time buyers shows how much more reliant the housing market has become on new entrants.

Futcher adds: “The housing ladder is still attracting new climbers, but far fewer people are moving up the rungs once they’re on it.

“Activity among existing homeowners remains well below historic levels, suggesting many people are choosing to stay put for longer rather than move home.

“First-time buyers are also having to stretch further to get onto the property ladder.”

Broadstone senior director Richard Pinch says: “Mortgage activity showed clear signs of recovery in 2025, with sales reaching their highest annual level since 2021 as buyers returned to the market following a period of higher interest rates and affordability pressures.

“The mortgage market has undergone a significant structural shift, with first-time buyers playing an increasingly central role in driving activity.

“This reflects the changing dynamics of home ownership, as new buyers remain a key source of demand despite the affordability challenges of recent years.”