The property portal’s latest House Price Index found that the average value of homes sought by first time buyers has risen by 4.3% year on year to £254,750. This compares with wider UK house price inflation of 1.5%, with the average UK house price now standing at £271,900.
Zoopla said there are 6% fewer first time buyers in the market compared to a year ago, as higher mortgage rates and wider economic uncertainty continue to affect demand. However, buyers who remain active are continuing to target similar property types and values rather than lowering expectations.
Zoopla said changes to mortgage affordability testing last year had improved access to higher value homes for some buyers, helping support sales activity and house price growth.
Overall housing market activity has remained resilient despite buyer demand falling by 10% year on year. Sales agreed are currently running 1% ahead of last year, marking the first positive annual sales figure recorded in 2026.
The number of new homes coming to market has also increased by 3.4% compared to a year ago.
Regionally, house prices across northern England, Scotland and Wales are increasing by between 2% and 3.6%, while prices in London and the South East remain flat or slightly negative.
Sales agreed in London are up 8% year on year, although Zoopla said a 13% increase in homes available for sale continues to give buyers stronger negotiating power.
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.”
Tom Bill, head of UK residential research at Knight Frank commented, “Higher mortgage rates mean the UK housing market will come under gradual and sustained pressure this year rather produce a cliff-edge moment. Buyers sitting on mortgage offers that pre-date the Middle East conflict feel a sense of urgency to act while others have seen their spending power eroded. Over time the second group will become larger than the first, particularly as inflationary pressures persist, which will put moderate downwards pressure on prices.”
“Although overall buyer demand remains below last year’s levels, it is encouraging to see agreed sales edging ahead as committed movers continue to drive activity across the housing market. First-time buyers remain a crucial part of the market, and the fact that many are aiming for higher-value homes demonstrates ongoing confidence and determination to get onto the property ladder despite affordability pressures,” said Nathan Emerson, CEO of Propertymark. He added: “However, higher borrowing costs and wider economic uncertainty continue to present challenges for many households, particularly across southern England, where affordability remains stretched. Buyers and sellers alike are increasingly relying on the expertise of local agents to navigate changing market conditions, price homes accurately, and make informed decisions based on local demand.
“As mortgage affordability improves gradually and more homes come to market, stability and confidence will remain key to sustaining momentum through the remainder of 2026.”
