First-Time Buyers Are Skipping Starter Homes

A new analysis from Barclays has revealed a big shift in how first-time buyers are approaching the housing market in 2025. Instead of following the traditional route of purchasing smaller “starter” homes such as studios, one-bed flats or small terraces, many buyers are choosing to go straight for larger houses.

Semi-detached homes have become the most popular choice among first-time buyers, while demand for flats is on the decline. This signals a change in priorities, with more people looking for long-term, practical living spaces right from the start.

To make larger homes affordable, many first-time buyers are opting for longer mortgage terms, often stretching repayments over 30 years or more. With more time on their side, younger buyers in particular see this as a way to reduce monthly payments and free up disposable income — making bigger properties within reach.

Barclays says the shift is partly driven by a “forever home” mindset. Younger buyers, including many in Gen Z, are keen to move into a property that can serve them for years, avoiding the hassle and expense of upsizing later. Millennials, meanwhile, are also prioritising space — often buying homes with more bedrooms than they immediately need.

Preferences are also evolving when it comes to lifestyle. Dedicated work-from-home areas remain important for many younger buyers, while older generations continue to value outdoor space most highly. Together, these trends point to a new vision of what a first home should look like in today’s market.

Alongside Barclays’ findings, new mortgage products are emerging to support first-time buyers. For example, Newcastle Building Society has launched a “First Step” mortgage aimed at buyers with smaller deposits who aren’t relying on family contributions. Products like these reflect the growing demand for more flexible ways to get onto the property ladder.

If you’re a first-time buyer and would like to explore your options, our sales team is here to guide you through the next steps.