The average price of a home targeted by first-time buyers has risen 4.3% to £254,750, according to Zoopla’s latest house price index. This is nearly three times the nationwide rate of house price growth recorded, which sits at 1.5% – up from 1.4% last month – placing the average UK house price at £271,900.
Across Northern regions, house prices are rising by 2-3.6%, while they are holding flat to negative in London and the South East.
Demand versus sales agreed
Despite buyer demand being down 10%, UK sales agreed are running 1% ahead of last year, which marks the first positive sales agreed figure of 2026. Zoopla said the gap reflects a shift in the composition of the market – browsers and those sensitive to higher borrowing costs have stepped back, while buyers with a clear need to move have continued to make offers to buy homes.
In London, sales agreed are up 8% on last year – the strongest of any region – though with 13% more homes for sale, buyers retain real negotiating power and price inflation in the capital is set to remain subdued. Rising sales in the capital have stabilised prices after six consecutive months of modest falls, with house price inflation in London now flat year-on-year.
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This is not the first time demand has fallen sharply while sales have held firm, according to the property portal. The trend was recorded after the 2022 mini Budget and again ahead of the Autumn Budget in 2025, where on both occasions, sales proved more resilient than demand.
Focus on first-time buyers
In London, the average first-time buyer house price is now £502,250, £15,000 higher than last year, which is the first time prices for those stepping onto the property ladder have exceeded £500,000.
In Scotland, first-time buyers are seeking homes with average prices 7.9% higher than last year. This figure is 7% higher in the West Midlands, while the South West sees the lowest first-time buyer-focused increase at 1.9%.
Zoopla’s data shows that outside London, 53% of first-time buyer enquiries are for three-bed houses – the same as last year. In London, the property mix is also unchanged, with over half of enquiries focused on flats.
Changes to mortgage affordability testing last year have made more homes accessible to first-time buyers, supporting both sales and house price growth. First-time buyers account for over a third of all sales each year, and when this group seeks to spend more for homes, it creates upward pressure on entry-level prices that feeds through the whole market.
Richard Donnell, executive director at Zoopla, said: “We are in the peak months for homebuyers 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.”
