The market share of first-time buyers in England and Wales has dropped by 10.4% since January, research from comparison site reallymoving shows.
They made up 56.7% of buyers in August, down from 63.3% in January.
Over the same period, the average price paid by FTBs fell by 3.1% from £280,610 in January to £271,784, suggesting affordability is holding a number of buyers back.
Rob Houghton, chief executive of reallymoving, said: “These figures highlight the scale of the challenge facing first-time buyers in 2025. Prices may be softening and mortgage rates inching down, but not nearly enough to offset the affordability pressures being felt in every region of the country.
“First-time buyers face trying to save for a deposit amid rising living costs and secure a mortgage at a sustainable repayment rate, with very little targeted government support to help them onto the ladder.
“Unless we start to see a dramatic increase in housebuilding, as has been promised, and targeted measures to boost affordability, first-time buyers are unlikely to regain their market share any time soon. Beyond restricting market mobility, this will undermine the financial security of young people and erode the long-term stability that home ownership can provide.”
The proportion first-time buyers has dropped in every region of England and Wales during 2025, with the steepest falls in the South West, Yorkshire & Humber, the East of England and the North East.
Despite having the highest property prices in the country, London has the largest share of first-time buyers, accounting for 68% of all movers. Reallymoving said high rental costs making renting unsustainable long term, and support from the Bank of Mum and Dad, are both likely factors.
The average price paid by a first-time buyer in London fell by over £12,000 in the last 12 months from £454,800 in August 2024 to £442,443 in August 2025 – a decrease of 2.7%.