First-time buyers are leading the market in the UK

First-time buyers remain the powerhouse of today’s housing market, accounting for 39% of all sales and nearly half (49%) of all new mortgages for home purchase.

With borrowing power up 20% year-on-year, the number of first-time buyers mortgages has surged by 30%, fuelling a level of renewed momentum across the slower UK market. 

On average, first-time buyers are now targeting homes priced 2.4% higher than last year, despite these properties outpacing overall market growth of just 1.3%.

Regional differences are striking. In the North East, first-time buyers are stretching further, purchasing homes priced 10.2% higher than a year ago, which is the strongest demand growth in the country.

Meanwhile, in London and the South East, higher stamp duty and affordability pressures are pushing many first-time buyers towards lower-value homes instead.

This widening affordability gap highlights a market in motion - one where first-time buyers are both driving growth and reshaping demand patterns region by region.

What this means for agents

We connect you with the UK’s largest audience of active first-time buyers, helping you attract more enquiries and complete more sales.

First-time buyers are motivated, active and ready to move. They currently make up the largest single buyer group in the market… and they know what they want.

Almost half of all first-time buyers enquiries(45%) are for three-bedroom houses, signalling a strong appetite for family-friendly homes. For agents, this creates a clear opportunity to align listings and marketing strategies to match this demand.

Understanding regional affordability is key. 

In the North East, first-time buyers are stretching their budgets to secure the right homes. While those in the South of England are adapting by trading down in value to get a foot on the property ladder.

Targeted messaging that reflects these motivations can help agents build stronger engagement and convert more leads into sales.

What this means for housebuilders

Our audience-first approach ensures your developments are seen by first-time buyers at the exact moment they’re ready to take action.

First-time buyers continue to underpin the new-build market, especially outside London and the South East. Demand is strongest across the North, Midlands, and Scotland, where affordability remains more favourable.

Housebuilders that can deliver well-priced, family-oriented homes in these regions are set to benefit most.

At Zoopla, we help housebuilders connect directly with active first-time buyers who are enquiring about homes through our platform. With half of all new mortgages now going to this group, the opportunity to engage this audience has never been greater.

Tap into the power of first-time buyers; speak to your Zoopla account manager today to find out how we can help you connect with this market-leading audience.

Richard Donnell, Executive Director at Zoopla comments: “First-time buyers have had a 20 percent boost to affordability over the last six months. This is enabling them to look at buying higher value homes in the more affordable parts of the country.  In contrast, first-time buyers in London and southern England are looking for cheaper homes than a year ago despite the extra borrowing capacity. Higher levels of stamp duty since April haven’t helped. Large deposits and mortgage regulations mean a high household income is needed to buy in southern England where affordability remains a challenge.

“The variation in affordability explains why first time buyers across England are looking to buy three bed houses while in London, one and two bed flats remain the primary target for those buying their first home.”