Iress’ Financial Readiness Index suggests homeownership is closer than buyers think

• Nearly one in three (29%) first-time buyers expect to buy their first home after the age of 40
• Actual age of first-time buyers now stands at 38.7 years
• Financial advice and planning could shave over 5 years off the average first-time buyer age - but many navigate mortgage process without support

The Iress Financial Readiness Index (FRI) highlights a clear gap between when people expect to buy their first home and when they could realistically get onto the property ladder with earlier financial planning and advice.

On average, prospective buyers expect to purchase their first home at 38.7 years, while the actual average first-time buyer age could be as low as 33 if they engage with financial planning and advice sooner. This support could streamline the lengthy process of buying a first home through access to specialist tools and advice. This would allow buyers to fast-track their applications and secure a mortgage that is more suitable for their needs.

The FRI also shows that 29% of first-time buyers expect to buy their first home after the age of 40. And with only 16% of prospective first-time homeowners actively saving to buy a home, this shows many individuals anticipate delayed entry into home buying and are deferring their preparation to buy their first home. This includes saving for a deposit, budgeting and engaging with a financial adviser earlier in the process.

Engagement with mortgage advice in the home-buying process continues to divide the nation. Just 46% of those who have bought a property sought advice from a financial adviser, indicating that a significant proportion of buyers are navigating the mortgage process without professional support.

The Home Ownership Gap forms part of the wider Financial Readiness Index, which reveals broader inconsistencies between how prepared people feel about their finances and their actual behaviours. Across major financial milestones, including protection, retirement and homeownership, the data consistently shows that people often overestimate their financial readiness.

For mortgage advisers, the findings present a clear opportunity to engage earlier with prospective buyers. By helping clients understand realistic timelines and take practical steps sooner, advisers can play a critical role in bridging the gap between expectation and reality.

Iress’ MD for UK Sourcing, Jennifer Raffery, said: “Homeownership is often seen as something that happens later in life, but our research suggests many people could be closer to getting on the property ladder than they realise.

“At the same time, we recognise the significant pressures first-time buyers are facing, from rising house prices to reduced product choice and increasingly complex affordability requirements.

“For advisers, it creates an important opportunity to engage clients much earlier in their journey. With access to the widest range of products and when supported by technology that helps them assess affordability, compare options, identify suitable outcomes more efficiently and even submit mortgage applications faster, brokers are in a strong position to help buyers understand what may be achievable in today’s market and secure the best outcomes on their behalf.

“The Financial Readiness Index is designed to support those conversations, helping advisers and consumers identify where expectations may not align with reality and where earlier action can make the biggest difference.”

The findings reinforce the importance of early financial planning and advice in helping more people onto the property ladder. By addressing the perception gap around timing and encouraging earlier engagement, the industry has an opportunity to improve financial readiness and support better outcomes for first-time buyers.