First-time buyer demand strengthened in the opening months of 2026 with improving confidence helping to drive higher levels of activity despite ongoing constraints around suitable housing supply.
New research from Yopa shows that 34.8% of homes considered suitable for first-time buyers had secured a buyer in Q1, up from 32.8% in the previous quarter – a rise of 2.1 percentage points.
The increase suggests that, while affordability pressures remain, buyers at the lower end of the market are beginning to re-engage, supported by a more stable mortgage environment compared to a year ago.
Regional performance was particularly strong across a number of major cities. Sheffield saw the largest quarterly jump, with demand climbing from 18.2% to 41.5%, while Edinburgh rose from 35.3% to 54.5%. Cardiff also recorded a notable increase, up 11.1 percentage points to 33.3%.
STRONGEST MARKET
Portsmouth and Plymouth followed with gains of 10.9 and 9.0 percentage points respectively, highlighting a broader improvement in first-time buyer activity across both northern and southern markets.
Despite these increases, Newcastle remains the strongest market overall, with 55% of first-time buyer suitable homes already sold subject to contract in Q1. Edinburgh (54.5%) and Leicester (51.5%) also posted some of the highest demand levels across Britain.
However, the data also highlights a persistent structural issue – a lack of available stock. First-time buyer suitable homes account for just 2.1% of all properties currently listed for sale, up only marginally from 1.9% in Q4 and 1.8% a year earlier.
Even in the strongest markets for supply, availability remains thin. Portsmouth tops the table, where such homes account for 3.4% of listings, followed by London (1.7%) and Bristol (1.6%).
The imbalance between rising demand and limited stock is likely to remain a key pressure point for agents, particularly as first-time buyers continue to rely on a narrow pool of suitable properties.
FIRST-TIME BUYER BOOST
Verona Frankish, Chief Executive Officer at Yopa, says: “It’s great to see that confidence amongst first-time buyers is building, with our research showing that demand has picked up during the first quarter of the year.
“This is despite the fact that mortgage rates haven’t fallen as quickly as many may have expected. However, the landscape is far more favourable than it was a year ago and this is clearly being reflected by the uptick in first-time buyer activity.
“Whilst we’ve also seen a marginal improvement in the availability of first-time buyer suitable homes, supply remains extremely limited and accounts for only a very small proportion of the market overall.
“So whilst confidence is returning, increasing the number of suitable homes available remains key to sustaining this momentum.”
