The number of first-time buyers has fallen 6% this year, but they are still “driving price growth”, Zoopla says.

House prices have risen 1.5%, with first-time buyers “leading the charge” by looking to buy houses 4.3% more expensive than this time last year, according to the portal’s latest data.

This is led by first-time buyers in Scotland looking at homes 7.9% more expensive, while those in the South West are looking at properties priced just 1.9% higher.

Highest share

First-time buyers currently make up more of the property market than they have in the past 20 years, Connells revealed in February.

They purchased 34.3% of homes sold across Britain in January, which was the highest share recorded since 2006.

More sales are being agreed as committed movers press ahead.”

Richard Donnell, Executive Director at Zoopla (pictured), says: “We are in the peak months for home buyers making offers and agreeing sales.

“Despite fewer buyer enquiries than last year, more sales are being agreed as committed movers press ahead as mortgage rates drift lower.”

This month’s house price index reveals that sales agreed are running 1% above last year, despite a 10% drop in buyer demand, as committed movers and first-time buyers drive sales.

House prices continue to rise in the North, Scotland and Wales, while London sees the largest increase in sales agreed at 8%.

There has been a 3.4% increase in homes listed, with finely balanced market activity holding up in the face of uncertainty, Zoopla says.

Industry reaction

Nathan Emerson, CEO at Propertymark, says: “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.”

Marc von Grundherr, Director at Benham and Reeves, says: “London continues to demonstrate remarkable resilience and while headline house price growth across the capital remains largely flat, the fact that sales agreed are up 8% year-on-year tells a very different story beneath the surface.

“Buyers remain active, but they are also more price conscious and selective than they were during the market highs of recent years. At the same time, increased stock levels are giving them greater negotiating power and this is helping to keep price growth subdued despite strong levels of transactional activity.

“What’s particularly notable is the strength of the first-time buyer market, with average target purchase values now surpassing the £500,000 mark for the first time. This suggests that while some buyers may have stepped back due to higher borrowing costs, those who remain committed are still prepared to stretch for the right property in the right location.”

Verona Frankish, CEO at Yopa, says: “While there remains a degree of economic uncertainty, the latest market data shows that the UK property market continues to hold up remarkably well and, importantly, transactional activity is moving in the right direction.

“The fact that sales agreed have edged ahead of last year for the first time in 2026 is an encouraging sign that committed buyers and sellers are continuing to press ahead despite a more cautious wider backdrop.

“We’re also seeing the strongest levels of house price growth continue to come from more affordable northern markets where improved mortgage affordability has had the greatest impact.

“At the same time, first-time buyers remain highly motivated and are clearly unwilling to compromise when it comes to the type and quality of home they want to buy.”

More resilient

Chris Hodgkinson, MD at House Buyer Bureau, says: “While the market has remained more resilient than many expected, the decline in buyer demand is still a very important warning sign and one that is likely to impact both transaction times and seller expectations over the months ahead.

“We’re increasingly seeing a market where committed buyers are still progressing purchases, but where a significant proportion of more hesitant or discretionary movers have stepped back to assess the economic outlook and direction of mortgage rates.”

Tom Bill, Head of UK Residential Research at Knight Frank, says: “Higher mortgage rates mean the UK housing market will come under gradual and sustained pressure this year rather than produce a cliff-edge moment.

“Buyers sitting on mortgage offers that pre-date the Middle East conflict feel a sense of urgency to act while others have seen their spending power erode.

“Over time the second group will become larger than the first, particularly as inflationary pressures persist, which will put moderate downwards pressure on prices.”

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