Despite a 6% drop in enquiries, first-time buyers are not compromising on the homes they want, Zoopla finds
First-time buyers in the UK are pursuing homes with an average price of £254,750 — approximately £10,000 higher than 12 months ago — according to Zoopla's latest House Price Index.
That 4.3% rise is almost three times the broader UK house price growth rate of 1.5%, against an average national house price of £271,900.
Despite a 6% decline in first-time buyer enquiries, attributed to higher mortgage rates and wider economic uncertainty, those who remain active are not adjusting their expectations downward.
Zoopla's data shows that outside London, 53% of first-time buyer enquiries are for three-bedroom houses — unchanged from last year. In London, the mix is similarly stable, with a majority of enquiries focused on flats.
The average first-time buyer target price in London has surpassed £500,000 for the first time, reaching £502,250 — £15,000 above last year's figure — even as overall capital house prices have remained flat. Scotland recorded first-time buyer price growth of 7.9% year-on-year, the West Midlands 7%, and the South West the lowest at 1.9%.
Zoopla attributed part of the upward price pressure to changes in mortgage affordability testing introduced last year, which expanded the range of properties accessible to first-time buyers. The firm noted that this cohort accounts for more than a third of all UK sales annually, and that increased spending aspirations within the group create upward pressure on entry-level prices that filters through the wider market.
Sales agreed are running 1% ahead of last year — the first positive reading of 2026 — even as overall buyer demand remains 10% below year-ago levels. Zoopla said the gap reflects a shift in market composition, with rate-sensitive and discretionary buyers stepping back while those with pressing reasons to move have continued to transact.
Zoopla drew comparisons to previous episodes of demand weakness, including the aftermath of the 2022 mini Budget and the period before the 2025 Autumn Budget, when sales proved more resilient than demand indicators suggested.
New listings are up 3.4% on last year, pointing to continued seller activity despite uncertain conditions. UK house price inflation ticked up to 1.5%, with stronger gains of 2% to 3.6% recorded across the North of England, Scotland and Wales, where improved affordability has had the most impact in markets with limited supply.
In London, sales agreed are up 8% year-on-year — the strongest performance of any region — though with 13% more homes on the market, buyers retain meaningful negotiating leverage. Price inflation in the capital is flat on an annual basis following six consecutive months of modest declines.
"We are in the peak months for home buyers making offers and agreeing sales," said Richard Donnell (pictured right), executive director at Zoopla. "Despite fewer buyer enquiries than last year, more sales are being agreed as committed movers press ahead as mortgage rates drift lower.
"Many households are understandably cautious given the wider uncertainty. If you are thinking of moving, the most important step is understanding what is happening in your local market rather than relying on national trends.
"Getting advice from a local estate agent is important and for sellers in southern England, pricing correctly is the difference between moving and not moving this year."
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