First-time Buyers
- The Cedar Crest Team
- 2 hours ago
- 3 min read
Affordability pressures are reshaping buyer choices
FIRST-TIME BUYERS REMAIN committed to entering the property market, but their approaches are evolving. Recent data indicate that an increasing number of people are opting for semi-detached homes and extending mortgage terms to make borrowing more manageable[1]. These trends demonstrate how younger households are adapting to rising prices, interest rates, and deposit requirements.
Move Towards Semi-detached Homes
Semi-detached homes have become an increasingly popular choice among first-time buyers. While flats have traditionally been regarded as the typical entry point, demand has shifted towards houses that offer more space and flexibility. Data show that approximately 30% of first-time buyers now purchase semi-detached properties, up from just over 25% a decade ago[1].
Several factors explain the trend. Hybrid working patterns mean buyers place greater emphasis on extra rooms and outdoor space. Rising rents have also prompted some to delay purchasing until they can afford a larger property, skipping the flat stage altogether. Additionally, semi-detached homes can often offer better long-term value, reducing the need to move again within a few years.
Longer Mortgage Terms Are Becoming the Norm
Along with changes in property types, many first-time buyers are choosing to lengthen their mortgage terms. Where 25 years used to be standard, terms of 30 to 35 years are becoming more common. UK Finance reports that over 40% of first-time buyers now take out mortgages lasting longer than 30 years[2].
The appeal is evident: spreading repayments over a longer period reduces the monthly cost, helping buyers meet affordability checks. For some, it is the only way to secure a property at current price levels. However, while lower monthly payments can ease the strain, longer terms mean paying more interest overall across the lifetime of the mortgage.
Balancing Affordability and Future Cost
These adaptations reflect the balancing act faced by first-time buyers. On one side, choosing a semi-detached property offers more space and stability. On the other hand, extending the loan term makes the purchase more affordable initially. Together, these choices highlight how buyers focus on immediate affordability while keeping long-term goals in mind.
However, there are trade-offs. Buyers who extend their repayment period to 35 years might face higher costs later in life, possibly pushing repayments into retirement. Opting for a larger property could also result in increased running costs and council tax. The key is to understand both the advantages and the long-term consequences.
How People Access the Market
The shift towards semi-detached homes and longer mortgage terms reflects wider pressures in the housing market. The average first-time buyer deposit now exceeds £60,000, with higher amounts in London and the South East[3]. Mortgage rates, although stabilising, remain above the ultra-low levels of the late 2010s. Meanwhile, wage growth has not kept pace with house price inflation, reducing affordability.
These conditions have transformed how people access the market. Instead of concentrating solely on climbing the ladder quickly, buyers are considering lifestyle factors, borrowing capacity, and long-term viability.
Demonstrating Resilience and Adaptability
First-time buyers continue to demonstrate resilience and adaptability, even amidst a challenging environment. Choosing semi-detached homes indicates a desire for more space and future security, while longer loan terms help to increase borrowing capacity in the short term.
As the market develops, lenders and policymakers will need to recognise these shifts. Supporting first-time buyers involves not only tackling affordability but also making sure that today’s solutions don’t cause tomorrow’s financial difficulties.
Looking to Take Your First Step With a Clear Mortgage Plan
So, you’re ready to discuss mortgages for first-time buyers. Whether you’re saving or prepared to make an offer, we’re here to help you step onto the property ladder.
Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017,
UK (For Cantonese and Mandarin enquiries):
+44 (0) 7888 431091
+44 (0) 7724 344788
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SINGAPORE: +65 8363 9221
– email info@cedar-crest.co.uk
Your home may be repossessed if you do not keep up with repayments.
Source data:
[1] gov.uk/government/collections/uk-houseprice-index-reports
[2] ukfinance.org.uk/data-and-research/data/ mortgages/lending-trends
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