Zoopla’s latest House Price Index reveals that first-time buyers are targeting homes worth £10,000 more than last year. First-time buyers are seeking homes with average prices of £254,750, 4.3% higher than last year.
This is almost three times the headline rate of UK house price growth more broadly of 1.5% with the average UK house price at £271,900.
There are 6% fewer first-time buyers in the market than this time last year, but according to Zoopla Those who stay do not give up what they want to buy.
Overall, agreed sales in the UK were up 1% compared to last year – the first positive agreed sales figure for 2026 – despite a 10% drop in buyer demand, with committed movers of all types continuing to agree to buy homes.
The latest index from Zoopla shows UK house price inflation rose to 1.5%, with prices rising between 2-3.6% in the northern regions, and stabilizing to negative in London and the south-east.
Housing market activity remains resilient in the face of uncertainty and rising borrowing costs, and although the number of buyers is down compared to last year, the outlook remains well balanced.
Commenting on the latest figures, Nathan Emerson, CEO of Propertymark, said: “Although overall buyer demand remains below last year’s levels, it is encouraging to see agreed sales moving forward as committed movers continue to drive activity across the housing market. First-time buyers remain an important part of the market, and the fact that many are aiming to purchase higher value homes shows the continued confidence and determination to get on the property ladder despite affordability pressures.
“However, high borrowing costs and wider economic uncertainty continue to pose challenges for many households, particularly across the south of England, where affordability remains stretched. Buyers and sellers alike are increasingly relying on the expertise of local agents to navigate changing market conditions, price homes accurately, and make informed decisions based on local demand.”
“As mortgage affordability gradually improves and more homes hit the market, stability and confidence will remain key to maintaining momentum through the remainder of 2026,” he concluded.
Jeremy Liff, a north London estate agent and former RICS Residential chairman, said: “Zoopla has confirmed what we have been seeing in our offices over the last few months: a decline in buyer demand, but those in the market are serious about moving – it really is a case of quality rather than quantity.
“These motivated buyers searching for a new home are leveraging their negotiating position, especially given the ongoing concerns about the Iran War and its knock-on effects on the cost of living and mortgage rates.”
“As a result, transactions take longer, making sellers – especially those with larger homes that often fall on longer chains – more vulnerable to renegotiation or deal failure,” he added.
MT CFO Tomer Abudi responded: “Although there has been some positive growth for the first time this year in the number of sales agreed, demand remains at a relatively low point as inflation and mortgage rates deter buyers.
“We have some positive signs in the first-time buyer market. Although numbers are down, they are willing to push themselves further than they were 12 months ago and pay a little more in order to get on the ladder. This is no doubt because they are tired of the ongoing uncertainties in the wider economy and a desire to simply keep buying, rather than delay again.”
“With another by-election on the horizon and talk of a change in Labor leadership, more uncertainty like this will not help the housing market. Everyone is hoping for some certainty and calm as these ups and downs are not good for confidence.”
