First-time buyers are continuing to stretch further up the housing ladder despite higher mortgage costs and weaker overall buyer demand, according to the latest Zoopla House Price Index.
The report shows first-time buyers are now targeting homes worth an average of £254,750 — around £10,000 more than this time last year and 4.3% higher year-on-year. That rate of growth is almost three times faster than wider UK house price inflation, which currently stands at 1.5%, with the average UK home valued at £271,900.
The data suggests buyers entering the market are proving more resilient than expected, with many still pursuing larger or higher-value homes despite affordability pressures and economic uncertainty.
Across the wider market, sales agreed are running 1% ahead of last year — the first positive sales figure recorded during 2026 — even though overall buyer demand is down 10%. Zoopla said the figures indicate more committed movers are continuing to transact while more cautious or discretionary buyers remain on the sidelines.
The trend is particularly visible in London, where the average property targeted by first-time buyers has passed the £500,000 mark for the first time, reaching £502,250. Despite this, overall house prices in the capital remain broadly flat, with buyers retaining strong negotiating power as the number of homes listed for sale continues to rise.
The report also found that the number of new homes coming onto the market has increased by 3.4% year-on-year, helping to support sales activity despite weaker demand.
Outside London, more affordable regions continue to record the strongest house price growth, with prices rising between 2% and 3.6% across northern England, Scotland and Wales, supported by improving mortgage affordability and lower levels of available stock.
Average price for a FTB home compared to the average price of all homes
Country/region | First time buyer price May 2025 | First time buyer price May 2026 | FTB price YoY change | £ change | House price index – average price for all homes |
London | £487,300 | £502,300 | 3.1% | £15,000 | £529,500 |
South East | £327,200 | £338,700 | 3.5% | £11,500 | £384,200 |
East of England | £322,200 | £328,500 | 1.9% | £6,300 | £338,800 |
South West | £246,600 | £254,500 | 3.2% | £7,900 | £311,500 |
East Midlands | £222,700 | £237,800 | 6.8% | £15,100 | £233,100 |
West Midlands | £212,900 | £227,800 | 7.0% | £14,900 | £238,000 |
Wales | £186,200 | £191,500 | 2.8% | £5,300 | £210,800 |
North West | £180,500 | £189,600 | 5.1% | £9,100 | £208,300 |
Yorkshire & Humber | £164,700 | £175,000 | 6.2% | £10,300 | £194,100 |
Scotland | £148,500 | £160,300 | 7.9% | £11,800 | £174,500 |
North East | £136,400 | £143,100 | 4.9% | £6,700 | £151,200 |
UK | £244,400 | £254,750 | 4.3% | £10,350 | £271,900 |
Source: Zoopla
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