First-time buyers targeting homes worth £10,000 more than last year, Zoopla reports
First-time buyers are targeting homes worth £10,000 more than a year ago, according to Zoopla’s latest House Price Index.
The report finds that first-time buyers are now seeking to buy homes with average prices of £254,750, up 4.3% on last year. Zoopla says that this is close to three times the headline rate of wider UK house price growth of 1.5%, with the average UK price now standing at £271,900.
Zoopla found that UK house price inflation increased from 1.4% last month, despite overall buyer demand running 10% below last year. Sales agreed are 1% ahead of last year, marking the first positive sales agreed figure of 2026, as committed movers continue to support transactions. However, with fewer buyers in the market, this remains finely balanced.
In London, first-time buyer house prices have surpassed £500,000 for the first time, with the average standing at £502,250, £15,000 higher than last year, despite overall average house prices remaining level.
In Scotland, first-time buyers are seeking homes with average prices 7.9% higher than last year and 7% higher in the West Midlands, while the South West sees the lowest first time buyer-focused increase at 1.9%.
Zoopla’s report finds that a combination of higher mortgage rates and increased uncertainty has led to a 6% drop in first-time buyer enquiries; however, those still active in the market are not compromising on what they want to buy. Zoopla’s data shows that outside London, over half of first-time buyer enquiries (53%) are for three-bed houses, the same as last year. In London, the property mix is also unchanged, with over half of enquiries focused on flats.
Changes to mortgage affordability testing last year have made more homes accessible to first-time buyers, supporting both sales and house price growth. First-time buyers account for over a third of all sales each year and when this group seeks to spend more for homes, it creates upward pressure on entry-level prices that feeds through the whole market.
Richard Donnell, executive director at Zoopla, said: “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. 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.”
Source: Show House
