New analysis by Rightmove reveals the areas most popular with first-time buyers where buyer demand is growing, bucking a national trend over the past month.
West Oxfordshire is the best. with demand for typical properties by first-time buyers increasing by 45% year-on-year.
According to Rightmove, a 37% increase in first-time buyer-type homes for sale and flat house prices are helping first-time buyers in West Oxfordshire.
East Staffordshire (+31%) and Bracknell Forest (+28%) are next on the list
Nationally, first-time buyer demand was 4% lower in April than the same month last year. However, according to research, first-time buyer demand has held up better than the broader market, despite higher mortgage rates:
The average monthly mortgage payment for a first-time buyer is now £998 a month, up from £904 in February.
First time buyer type properties are defined as 0-2 bedroom houses, which a person can often use as a first step onto the housing ladder.
The data suggests that a large increase in first-time buyer-type properties available (+37% year-on-year) and flat house prices (-0.8% yoy) are supporting strong demand for first-time homes in West Oxfordshire.
Further highlighting the resilience of the first-time buyer market, data from UK Finance shows that first-time buyers make up around 55% of home purchases, up from 39% 15 years ago, reflecting the continued desire and drive to get on the ladder for the first time.
When we look at the top 25 areas where first-time buyer demand has increased year-on-year, some themes emerge.
Commuting plays its part, with a few areas having strong connections to London, while others are well connected to other major cities and key employment areas.
Being able to buy is also important. 17 of the top 25 have average asking prices below the national average for a first-time buyer’s property, currently £228,048.
Additionally, more supply is likely to help increase demand in these areas. The number of available first-time buyer properties for sale increased year-on-year in 21 of the 25 hotspots, by an average of 14%, exceeding the national trend where the available supply of typical first-time buyer properties increased by 4%.
Commenting on the latest figures, Rightmove property expert Colleen Babcock said: “First-time buyers are the most vulnerable to rising mortgage rates, so it was surprising to see this sector hold up better than the wider market.
“In some of these areas, an increase in the number of suitable starter homes entering the market, and prices falling year-on-year, is helping to improve affordability and support demand for first-time home buyers, with each local market shaped by its own unique strengths and local economy.”
NAEA Propertymark president Mary-Lou Press commented: “The resilience of the first-time buyer market, despite high housing costs, reflects the willingness of many buyers to get on the housing ladder, particularly in areas where affordability and choice have improved.
“At the bottom, buyers are very driven and flexible in location. Areas such as West Oxfordshire, East Staffordshire and Bracknell Forest are attracting strong interest due to a combination of improved stock levels, stable prices and good connections to major employment areas.
He added “The increase in housing availability also gives first-time buyers confidence and bargaining power compared to the more competitive conditions of recent years.
“This underscores how important first-time buyers are now to overall market activity, especially in regional areas where prices remain accessible to buyers balancing affordability with lifestyle and travel needs.”
