Zoopla’s latest House Price Index reveals that first-time buyers are targeting homes worth £10,000 more than last year. First-time buyers are looking to buy homes with an average price of £254,750, 4.3% more than last year.
This is almost three times the UK wide house price rate of 1.5% with an average UK house price of £271,900.
There are 6% more first-time buyers in the market than this time last year, but according to Zoopla those who remain are not compromising on what they want to buy.
Overall, UK agreed sales are running 1% ahead of last year – the first agreed number of agreed sales for 2026 – despite consumer demand falling by 10%, as dedicated movers of all types continue to agree to buy homes.
The latest index from Zoopla shows UK house price inflation reaching 1.5%, with prices rising between 2-3.6% in all northern regions, and holding negative in London and the South East.
Housing market activity has stalled due to uncertainty and high borrowing costs, although with fewer buyers than last year the outlook remains positive.
Commenting on the latest figures Nathan Emerson, CEO of Propertymark said: “While overall buyer demand remains below last year’s levels, it is encouraging to see sales being agreed as dedicated movers continue to drive activity in the housing market. Pressures.”
“However, high borrowing costs and wider economic uncertainty continue to present challenges for many homes, particularly in the south of England, where affordability remains stretched. Buyers and sellers alike rely heavily on the expertise of local agents to navigate changing market conditions, price homes accurately, and make decisions based on local context.”
He concluded: “As credit strength gradually improves and more homes come onto the market, stability and confidence will remain key to strengthening momentum in the remainder of 2026.”
North London estate agent and former RICS chairman Jeremy Leaf said: “Zoopla has confirmed what we’ve been seeing in our offices over the past few months: a drop in consumer demand, but those in the market are keen to move – it’s really a matter of quality over price.
“Those motivated buyers looking for a new home are taking advantage of their bargaining position, especially because of ongoing concerns about the war in Iran and the negative effects on the cost of living and housing costs.”
He added: “As a result, transactions take longer, which leaves sellers – especially those with large households often tied up in long chains – more exposed to renegotiations or agreements falling through the cracks.”
MT Finance Director Tomer Aboody responded: “Although there is good growth for the first time this year in the number of sales agreed, demand is still at a low level as inflation and mortgage rates deter buyers.
“There we have positive signs in the first-time buyer market. Despite the drop in value, they are willing to push themselves further than they were 12 months ago and pay less to move up. There is no doubt that this is due to frustration with the ongoing uncertainty in the wider economy and a desire to continue buying, rather than delaying again.
“With another by-election coming up and talk of a change in Labor leadership, uncertainty like this will not help the housing market. Everyone is hoping for certainty and calm as these ups and downs have no basis for confidence.”
