Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
First-time buyers made up 52.8% of UK mortgage sales in 2025, ONS figures show
First-time buyers accounted for 52.8% of UK mortgage sales in 2025, up from 33.8% in 2006, according to official figures from the Office for National Statistics.
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 remained around 34.5% below 2006 levels.
Loan-to-value ratios edge higher
Mortgage loan-to-value (LTV) ratios increased across much of the UK in 2025, continuing a 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.
Industry reaction
Quilter financial planner Ian Futcher said the recovery in mortgage activity during 2025 was encouraging, but noted the change in the shape of the market. He pointed to the growing share of first-time buyers as evidence of how reliant the housing market has become on new entrants.
He added that far fewer people are moving up the housing ladder once they are on it. Activity among existing homeowners remains well below historic levels, and many are staying put for longer rather than moving home. He also noted that first-time buyers are having to stretch further to get onto the property ladder.
Broadstone senior director Richard Pinch said mortgage activity showed clear signs of recovery in 2025, with sales at their highest annual level since 2021 as buyers returned after a period of higher interest rates and affordability pressures. He said the market has undergone a significant structural shift, with first-time buyers increasingly central to activity.
What it means for the rental sector
For letting agents and inventory clerks, the figures show fewer existing homeowners moving and first-time buyers stretching financially to enter. Households staying put for longer and affordability pressures on new buyers could affect stock turnover and tenant mobility across the private rented sector.
Source: Mortgage Strategy