First-time buyer prices rise by £10,000 on 2026
First-time buyers are targeting homes worth £10,000 more than a year ago, with average prices up 4.3% to £254,750 – nearly 3x the rate of UK house price growth, according to Zoopla’s latest House Price Index.
The trend is nudging up UK house price inflation, which has increased from 1.4% in March to 1.5% by the end of April. Prices have risen between 2-3.6% across northern regions, and are holding flat to negative in London and the South East, even though overall buyer demand is 10% below last year.
Meanwhile, UK sales agreed are running 1% ahead of last year – the first positive sales agreed figure of 2026.
Zoopla says first-time buyer story is most striking in London, where average first-time buyer house prices have crossed the £500,000 mark for the first time to £502,250 – £15,000 higher than last year. That’s despite overall average house prices in the city remaining static.
First-time buyer prices seen highest growth in Scotland
Meanwhile, in Scotland, first-time buyers are looking at 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%.
Outside of London, over half of first-time buyer enquiries (53%) are for three-bed houses – the same as last year, while in London the property mix is also unchanged, with over half of enquiries focused on flats.
However, higher mortgage rates and increased uncertainty have also made first-time buyers nervous, with a 6% drop in first-time buyer enquiries.
The flow of new homes listed for sale is up 3.4% on last year, according to Zoopla. In London, sales agreed are up 8% on last year – the strongest of any region – though the region also has 13% more homes for sale.
Committed movers press ahead
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.”
Verona Frankish, CEO of Yopa, said it was encouraging to see transactional activity 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.”
However, Chris Hodgkinson, managing director of House Buyer Bureau, warned of the need for caution. “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.”
