Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

First-Time Buyer Demand Falls Amid Ongoing Supply Shortage, Says Yopa

First-time buyer demand across Britain declined in the second quarter of 2026, according to new research from estate agency brand Yopa. The analysis also highlights a continued shortage of suitable homes for first-time buyers, despite some regional increases in demand.

Yopa measured first-time buyer demand by examining the proportion of homes listed under government and industry schemes that had sold subject to contract, as a percentage of total available stock. Nationally, 32.9% of first-time buyer suitable homes had found a buyer in Q2 2026, down from 34.8% in the first quarter. On an annual basis, demand was broadly unchanged, sitting just 0.2 percentage points below the level recorded in Q2 2025.

Regional Variations in Demand

While overall demand softened, several cities saw significant quarterly increases. Swansea recorded the largest rise, with the proportion of suitable homes sold subject to contract jumping from 7.7% in Q1 to 40% in Q2. Liverpool also saw a notable uplift, with demand rising by 24 percentage points to 60.8%. Edinburgh experienced a 14.7 percentage point increase, reaching 69.2%.

Bournemouth and Sheffield posted quarterly improvements as well, with demand increasing by 11.5 and 8.5 percentage points respectively. Edinburgh had the strongest level of first-time buyer demand overall, with 69.2% of suitable homes sold subject to contract in Q2. Liverpool ranked second at 60.8%, followed by Bristol at 50.5%. Sheffield and Bournemouth both recorded demand at 50%.

Supply of Suitable Homes Remains Low

Despite these regional boosts, the supply of suitable first-time buyer homes remains limited. Across Britain, such properties accounted for just 1.7% of all homes listed for sale in Q2 2026, down from 2.1% in the previous quarter, according to Yopa.

This ongoing shortage of suitable stock continues to present a challenge for first-time buyers and those working in the UK property sector, including letting agents and inventory clerks.