Fresh data from Santander has exposed a dramatic shift in the UK housing landscape, revealing that the dream of homeownership is being delayed for many, with one in five first-time buyers now over the age of 40.
The bank's 2025 figures show that 22% of all first-time buyers were over 40, a significant increase from 18% just a year earlier in 2024. This trend is part of a wider move that sees the average age of a first-time buyer steadily inching towards 40.
The Rise of the Older First-Time Buyer
Perhaps the most startling statistic is the age of the oldest person Santander helped onto the property ladder. In 2025, the bank supported a 70-year-old first-time buyer, breaking the previous record of 67 set in 2024.
This is not an isolated case. The data indicates a 14% surge in first-time buyers over the age of 60 compared to the previous year. This growing cohort is increasingly relying on methods such as family gifts, inherited wealth, or decades of saving to accumulate a deposit.
In stark contrast, the number of younger people buying homes is collapsing. The figures show a dramatic 23% drop in buyers aged 25 and under from 2024 to 2025.
Expert Warnings of a 'Broken' Market
Industry experts have reacted to the data with grave concern, stating it is clear evidence of a dysfunctional housing market. Andrew Montlake, Chief Executive of London-based Coreco, did not mince his words.
He stated, "That more than one in five first-time buyers is now aged 40 plus is all the proof you need that the UK property market is broken." He, like many other commentators, pointed to a single, fundamental solution: the need to build more homes.
This sentiment was echoed across the industry. Omer Mehmet of Trinity Finance described the challenge facing new buyers as "the Everest that first-time buyers have to climb." Katy Eatenton of Lifetime Wealth Management called the situation a "key structural issue," directly blaming the chronic undersupply of housing for relentlessly rising prices.
A Call for Long-Term Solutions
The consensus among mortgage and wealth experts is that the situation is a damning indictment of successive governments' failures on housing policy. Emma Jones of Whenthebanksaysno.co.uk predicted the average age will continue to rise until the core issue is addressed.
Riz Malik of R3 Wealth noted that over his 20-year career, he has watched first-time buyers get "older and older," with many now dependent on parental assistance. Despite lenders creating innovative products, the high cost of houses relative to average incomes remains a formidable barrier.
While David Morris, head of homes at Santander, struck a positive note by saying the data proves it's "never too late to realise your homeownership dream," he also acknowledged the growing disparity between generations. He cited a lack of supply and the impact of stamp duty changes as key factors widening the gap.
The data presents a clear and urgent challenge: without a concerted, long-term plan to increase the UK's housing stock, the dream of owning a home will remain out of reach for an ever-growing number of people, potentially for decades.
