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 Numbers Drop 6% But Continue to Drive UK Price Growth

The number of first-time buyers in the UK has fallen by 6% this year, but they are still driving house price growth, according to Zoopla. Despite the decline in buyer numbers, first-time buyers are “leading the charge” by seeking homes that are 4.3% more expensive than this time last year.

Zoopla’s latest data shows that house prices have risen by 1.5%. The increase in target purchase prices is most pronounced in Scotland, where first-time buyers are looking at homes 7.9% more expensive than last year. In the South West, the increase is 1.9%.

Connells reported in February that first-time buyers made up 34.3% of homes sold across Britain in January, the highest share recorded since 2006. This indicates that first-time buyers currently represent a larger portion of the property market than at any point in the past 20 years.

Zoopla’s house price index for this month reveals that sales agreed are running 1% above last year, even though buyer demand has dropped by 10%. The data suggests that committed movers and first-time buyers are driving these sales. There has also been a 3.4% increase in homes listed for sale, with market activity remaining balanced despite ongoing uncertainty.

House prices continue to rise in the North, Scotland, and Wales. In London, the number of sales agreed has increased by 8%, although overall house price growth in the capital remains flat.

For letting agents and inventory clerks, these trends highlight the ongoing importance of first-time buyers in the UK property market. The increase in sales activity and listings may lead to more tenancy transitions and property checks, particularly in regions experiencing higher growth.