First-time buyers stretch repayment terms for forever homes

New analysis has revealed an interesting shift in the purchasing habits of first-time buyers. Instead of buying a traditional starter home – a studio, a one-bedroom flat or a small terraced house – Barclays found a third of first-timer purchases are semi-detached homes.

The bank came to this conclusion after analysing its mortgage lender data from August 2025, finding novice homeowners are bypassing smaller properties in favour of larger dwellings. The data – published as part of Barclays Property Insights report - showed 33.5% of purchases made by first-time buyers in August 2025 were semi-detached homes - up 1.7 per cent year-on-year. Meanwhile, flats fell out of favour, declining in popularity by 2.7% and accounting for only 19.6% of first-time buyer purchases.

In the process of buying a bigger and more expensive first home, Barclays said first-time buyers were willing to take on longer term mortgages in order to manage the financial commitments. In fact, the bank found 4 in 10 of its first-time buyer customers chose mortgages that allowed them to repay their home loan over 30 or more years. With age on their side, younger first-time buyers opted for longer repayments terms as they resulted in lower monthly repayments and free up more disposable income every month. 

Barclays says this new buying behaviour represents a desire to move into a ‘forever’ home as quickly as possible. Of those first-time buyers questioned, 33% of recent Gen Z buyers, aged 18 to 27, said they bought a forever home so that they wouldn’t have to move again. 

It’s a trend not contained to Gen Z either. Barclays found Millennial home buyers (28-43 year old), were the most likely purchasing age group to prioritise space when moving home. There was a strong desire to avoid the hassle and cost of upsizing later, with 22% of Millennials buying a property with more bedrooms than they actually needed.

When it came to ‘must haves’ Gen Z were most likely (28%) to want a property with a dedicated work from home space. This compares to 20% of Millennials and only 9% of Gen X (44-59 years old). Outside space was prioritised by nearly half (49%) of Gen X purchasers, followed by 40% of Millennials and 32% of Gen Z.

Barclays’ latest property report was released at the same time as breaking first-time buyer mortgage news. Newcastle Building Society has launched one of the highest loan-to-value mortgages, aimed exclusively at first-time buyers with small deposits and no financial help.

The lender’s First Step mortgage can be accessed by first-time purchasers who have a deposit that equals just 2% of a home’s value. The biggest caveat, however, is that the borrower(s) must not be in receipt of any cash contributions from their parents – commonly referred to in this instance as the ‘Bank of Mum and Dad’. 

Other First Step mortgage conditions include a borrowing limit between £96,000 and £350,000, with a deposit of at least £5,000, or 2% of the property’s price, whichever is higher. For example, a first-timer buyer purchasing a home worth £250,000 must provide a £5,000 deposit. A purchase cost of £350,000 would require a £7,000 deposit.

If you are a first-time buyer and would like to explore the possibility of getting on the property ladder, please get in touch with our sales team for guidance.