The number of first-time buyers in 2015 fell for the first time in four years, according to the annual Halifax first-time buyer review.
Halifax estimated the number of first-time buyers was 310,000 in 2015, down -0.5% from 311,700 in 2014.
It is the first decline in the number of first-time buyers since 2011 and is partly due to lack of housing supply, Halifax said.
Despite the fall, the number of first-time buyers is up 60% to 193,700 from 2011.
The average deposit paid by first-time buyers increased in 2015 was £32,927, up 13% from £29,094 the previous year.
The average price paid by first-time buyers rose 10% in 2015, from £172,5632 to £190,180, taking the price above the previous peak of £174,994 in 2007 for the first time.
In London, the average first-time buyer deposit was £91,409, five-and-half times more than the Northern Ireland average of £16,578.
While a mortgage term of 25 years has been the norm for some time, Halifax said people are increasingly taking out mortgages spread over a longer period.
In 2007 the number of first-time buyers taking up a 35-year mortgage was 16%, but by 2015 this figure had grown to over one-in-four (26%). The share of mortgages with a 20 to 25 year term dropped from 48% to 30% over the same period.
Craig McKinlay, mortgages director at Halifax, said: “Although the average price of the typical first-time buyer home has grown by 10% in the past year, the number of buyers taking that first step onto the housing ladder has been supported by favourable economic conditions; namely, record low mortgage rates, rising employment and real pay growth.”
“Whilst affordability has improved since 2007, in many parts of the country the ratio of the average house price to earnings is still significantly above the long-term average of 4.0. This is a concern as it could prevent many potential buyers from entering the market.”
