Brits buying first properties as 'compromise homes' as new figures show they leave after just 4.5 years

BRITS are buying their first properties as “compromise homes rather than dream homes”, new figures show.

Homeowners stay in their first homes for just four and half years compared to eight years for a second or third home, with compromises on space and location driving many first-time owners to quickly move on, according to new research by Santander UK. 

Despite the common adage of home being where the heart is, the lender's research reveals buyers today are acting with their heads when it comes to their first property, with one in four (25%) saying they feel no emotional attachment and see it as more of a stepping stone. 

This differs from earlier generations, where one in five Brits aged over 80 still live in their first property.

Rob Peters, Principal at Simple Fast Mortgage, told Newspage that “first homes today are compromise homes rather than dream homes”. 

He added: "Rising prices, tighter lending, and affordability pressures mean most first-time buyers simply get on the ladder wherever and however they can and use their first property as a strategic step, rather than settling for decades. It's no surprise people move on quickly once equity builds or life circumstances change.

"The idea of a ‘forever home’ has become a luxury few can afford at the start. For this generation, first homes are functional, not emotional, and that’s a reflection of the market, not the mindset."

Dariusz Karpowicz, Director at Albion Financial Advice, described 21st century homeowners as “a generation on the move” in contrast to our grandparents.

He continued: "The days of buying your forever home first time round are as outdated as keeping the same job for forty years. Modern life moves at breakneck speed, and our homes need to keep pace. 

"Today's first-time buyers are pragmatists, not romantics. They're snapping up starter homes to escape rental traps, treating property as a stepping stone rather than a lifelong commitment. 

“With family dynamics shifting and remote work reshaping where we need to be, that cramped flat near the office becomes redundant faster than you can say ‘mortgage approval’ Add rising property costs forcing compromises on space and location, and it's no wonder young homeowners are ready to trade up after just 4.5 years."

Justin Moy, Managing Director at EHF Mortgages, said it was not surprising to see the new figures.

He added: "Typically the needs of homeowners will change radically in those first few years, perhaps from the needs of a young individual or couple through to starting a family, and that original home may not be suitable. This will be more common with those who intiial buy flats and similar leasehold property, as they look for garden space and more bedrooms as their lifestyle changes. 

“The increasing affordabilty calculation available from a number of mortgage lenders may allow those FTB's to buy the equivalent of their 2nd or 3rd home, bypassing that smaller first home to avoid excessive stamp duty and moving costs. This could see that average lifespan of ownership change again.”

Ben Perks, Managing Director at Orchard Financial Advisers, said buyers are compromising on their first homes to merely get on the property ladder.

He continued: "The cost of property has given rise to phrases like ‘starter home’ and ‘getting on the property ladder’ people will snap something affordable up just to get them going. The cost of rent also encourages those lucky enough to have deposits to buy rather than rent. 

"This is a practical solution rather than an emotional one, so it’s no surprise they’re moving on. We also live in a more transient society, with people moving around for work. As personal circumstances improve and life becomes more settled, people will move to a more fitting property long term."

Michelle Lawson, Director at Lawson Financial, said it was no doubt due to costs of house-buying being so high.

She said: "The costs of buying a home have increased significantly over the years. Due to this, my advice is always maximise the potential with each move otherwise you get left behind. 

"Lifestyle and family dynamic has changed as has the working pattern so homes are needed to adapt to these changes and remodelling current properties isn't always possible. Most first-time buyers I work with get somewhere 'for now' with view to moving later so this echoes this research."

Elliott Culley, Director at Switch Mortgage Finance, agreed, adding: "With it becoming more and more difficult for a first-time buyer to take their first step on the housing ladder, it's unsurprising to see the average lifespan of a first home to be less than five years. 

“With house prices continuously on the rise, homeowners are able to increase their deposit once on the ladder and look for that bigger property.”