Zoopla’s latest House Price Index reveals that first-time buyers are targeting homes worth £10,000 more than a year ago.First-time buyers are seeking to buy homes with average prices of £254,750, 4.3% higher than last year.
This is nearly three times the headline rate of wider UK house price growth of 1.5% with an average UK house price of £271,900.
There are 6% fewer first time buyers in the market than this time last year, but according to Zoopla those that remain are not compromising on what they want to buy.
Overall, UK sales agreed are running 1% ahead of last year – the first positive sales agreed figure of 2026 – despite buyer demand being down 10%, as committed movers of all types continue to agree to buy homes
The latest index from Zoopla shows UK house price inflation edging up to 1.5%, with prices rising between 2-3.6% across northern regions, and holding flat to negative in London and the South East.
Housing market activity is holding up in the face of uncertainty and higher borrowing costs, though with fewer buyers than a year ago the outlook remains finely 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 edging ahead as committed movers continue to drive activity across the housing market. First-time buyers remain a crucial part of the market, and the fact that many are aiming for higher-value homes demonstrates ongoing confidence and determination to get onto the property ladder despite affordability pressures.
“However, higher borrowing costs and wider economic uncertainty continue to present challenges for many households, particularly across southern 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.”
He concluded: “As mortgage affordability improves gradually and more homes come to market, stability and confidence will remain key to sustaining momentum through the remainder of 2026.”
North London estate agent and former RICS residential chairman Jeremy Leaf said: “Zoopla has confirmed what we have been seeing in our offices over the past few months: a drop in buyer demand, but those who are in the market are serious about moving — it really is a case of quality over quantity.
“Those motivated buyers on the lookout for a new home are taking advantage of their negotiating position, particularly given the backdrop of ongoing concerns about the Iran war and knock-on effects on the cost of living and mortgage rates.”
He added: “As a result, transactions are taking longer, leaving sellers – particularly those with larger homes often caught in longer chains – more exposed to renegotiation or deals falling through.”
MT Finance director Tomer Aboody responded: “While there is some positive growth for the first time this year on the number of sales agreed, demand is still at a relatively low point as inflation and mortgage rates deter buyers.
“Where we have some positive signs is in the first-time buyer market. Despite a fall in number, they are prepared to push themselves further than they were 12 months ago and pay slightly more in order to get on the ladder. This is no doubt due to becoming fed up of the constant uncertainties in the wider economy and a desire to simply get on with buying, rather than delay yet again.
“With another by-election on the horizon and talk of a change in the Labour leadership, further uncertainty such as this will not help the housing market. Everyone is hoping for some certainty and calmness as this up and down is no good for confidence.”
