Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
First-Time Buyers Stretch Budgets as Market Holds Steady
First-time buyers in the UK are continuing to target higher-value homes, even as overall buyer demand has weakened, according to the latest Zoopla House Price Index reported by Property Industry Eye. The average price sought by first-time buyers has risen to £254,750, which is approximately £10,000 more than the previous year and represents a 4.3% year-on-year increase.
This growth in first-time buyer spending is nearly three times faster than the current UK house price inflation rate of 1.5%, with the average UK home now valued at £271,900. The data indicates that first-time buyers are showing resilience, pursuing larger or more expensive properties despite affordability challenges and economic uncertainty.
Across the wider market, sales agreed are running 1% ahead of last year, marking the first positive sales figure recorded during 2026, even though overall buyer demand is down by 10%. Zoopla's report suggests that more committed buyers are continuing to transact, while more cautious or discretionary buyers remain inactive.
In London, the trend is particularly pronounced, with the average property targeted by first-time buyers surpassing £500,000 for the first time, reaching £502,250. Despite this, overall house prices in the capital remain broadly flat, and buyers retain strong negotiating power as the number of homes listed for sale continues to rise.
The report also notes a 3.4% year-on-year increase in the number of new homes coming onto the market, which is helping to support sales activity despite weaker demand. Outside London, more affordable regions such as northern England, Scotland, and Wales are experiencing the strongest house price growth, with increases between 2% and 3.6%. These regions are supported by improving mortgage affordability and lower levels of available stock.
For letting agents and inventory clerks, these trends highlight ongoing shifts in buyer behaviour and regional market dynamics, which may influence rental demand and property turnover in the coming months.
Source: Property Industry Eye