West Oxfordshire has emerged as Britain’s strongest first-time buyer hotspot, with demand for starter homes jumping 45% year-on-year despite a wider national slowdown across the housing market.
Analysis from Rightmove found several local markets are continuing to attract strong first-time buyer activity even as higher mortgage rates place pressure on affordability.
The research showed national first-time buyer demand was 4% lower in April compared with the same month last year. However, the sector is still outperforming the wider market, with first-time buyers continuing to account for around 55% of all home purchases according to UK Finance data.
Rightmove says growing supply and more stable pricing were helping to support activity in some local markets.
FIRST-TIME BUYERS
West Oxfordshire topped the rankings after seeing a 37% increase in available first-time buyer properties coming onto the market, while average asking prices edged down by 1% year-on-year to £283,172.
East Staffordshire ranked second, with first-time buyer demand up 31%, followed by Bracknell Forest at 28%.
Scottish locations also featured strongly, including South Ayrshire (+25%), Aberdeen City (+22%) and East Ayrshire (+18%).
The data suggests affordability continues to play a major role in driving activity. Seventeen of the top 25 hotspots recorded average asking prices below the national average for a typical first-time buyer property, which currently stands at £228,048.
Supply growth also appears to be helping demand. Rightmove found available first-time buyer properties increased year-on-year in 21 of the top 25 hotspots, rising by an average of 14%.
The average monthly mortgage payment for a new first-time buyer has now risen to £998 per month, up from £904 in February.
IMPROVED AFFORDABILITY
Colleen Babcock (main picture, inset), Property Expert at Rightmove, says: “First-time buyers are more exposed to mortgage rate rises, so it was quite surprising to see this sector holding up more strongly than the wider market.
“While overall buyer demand is lower than last year, there are pockets of Great Britain seeing more activity, where local factors are making a real difference.
“In some of these areas, a rise in the number of suitable starter homes coming onto the market, alongside prices edging down year-on-year, is helping to improve affordability and support demand for first-time buyer properties, with each local market shaped by its own unique dynamics and local economy.”
IMPROVED STOCK LEVELS
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), adds: “The resilience of the first-time buyer market, despite higher mortgage costs, reflects the determination many buyers still have to get onto the housing ladder, particularly in areas where affordability and choice have improved.
“On the ground, buyers are becoming more value-driven and flexible on location. Areas like West Oxfordshire, East Staffordshire and Bracknell Forest are attracting strong interest due to a mix of improved stock levels, stable pricing and good connectivity to larger employment hubs.”
NEGOTIATING POWER
She adds: “The rise in available starter homes is also giving first-time buyers more confidence and negotiating power compared with the highly competitive conditions of recent years.
“However, affordability remains stretched nationally, with higher mortgage rates continuing to impact monthly repayments significantly.
“This reinforces how important first-time buyers now are to overall market activity, especially in regional areas where pricing remains more accessible for buyers balancing affordability with lifestyle and commuting needs.”
