The value of the first time buyer (FTB) economy, comprised of lending and spending, is set to reach a total of £74.1bn by 2025, according to latest research by Coventry for intermediaries in partnership with the Centre for Economics and Business Research (Cebr). This research forms part of Coventry for intermediaries’ second edition of The First Time Buyer Economy report looking at the value that FTBs bring to the housing market and wider UK economy.
The report showed that mortgage lending to this segment of the market alone is predicted to reach £71bn by 2025, which is 26% above estimated lending for the whole of 2023 (£56.5bn). In 2024 this is set to increase by 16% to £65.3bn.
Analysis by Cebr also shows that these borrowers are expected to spend an average annual total of £3.1bn on extra costs relating to home purchase by 2025. The total contribution of aspiring homeowners to the housing market is therefore set to reach £74.1bn in two years.
Cebr is an independent London-based economic consultancy specialising in economic impact assessment, macroeconomic forecasting and thought leadership. For more information on this report, or if you are interested in commissioning research with Cebr, please contact us using our enquiries page.