Hot Topic First Time Buyers Are Skipping Starter Homes

The traditional idea of buying a small “starter home” and moving up the ladder every few years is becoming less common. Today’s first-time buyers are entering the market later, borrowing more, and increasingly opting for larger, longer-term homes from the outset.

 

Several factors are driving this shift. Higher house prices relative to earnings, tighter affordability checks, and a higher cost of living mean many people are delaying their first purchase until their 30s. By that point, buyers are more likely to need a property that suits long-term family or lifestyle needs, rather than a flat or smaller house they plan to move on from quickly.

 

We’re also seeing the rise of longer mortgage terms — with 30, 35 and even 40-year terms becoming common. This helps spread costs and improve affordability, but it also means clients may be committing to one property for much longer than in the past.

 

For buyers, this trend brings both opportunities and challenges:

 

• Bigger deposits needed: Skipping the starter stage often means aiming for a higher-value property.

 

• Lifestyle fit: Moving into a “forever home” earlier can provide stability, especially for those planning families.

 

• Debt horizons: Longer terms reduce monthly payments but can significantly increase the total cost of borrowing.

 

• Market exposure: With fewer moves, buyers have fewer chances to “trade up” as property values grow.

 

For advisers, the message is clear: conversations with first-time buyers need to reflect these realities. It’s no longer just about “getting on the ladder” — it’s about helping clients structure borrowing that works for the long haul.

 

Your AWS adviser can guide you through affordability planning, term selection, and protection strategies to ensure today’s choices support tomorrow’s goals. Whether it’s your first step or a long-term leap, we’re here to make sure it’s the right one.