First-Time Buyers Lead the Charge: A UK Market Update and What It Means for Buyers

Getting a foot on the property ladder has never been easy, yet new research confirms that first-time buyers (FTBs) are approaching the market with renewed confidence, driving activity across the UK housing sector. This shift presents unique opportunities and challenges that require experienced, local insight, particularly in the competitive London market.

The FTB Boom: National Trends

First-time buyers now represent a colossal 39% of all home sales and almost half (49%) of all new mortgages issued nationally. This dominance is driving starter-home prices up by 2.4% annually, outpacing the 1.3% growth seen across the wider market.

The key catalyst is a major uplift in borrowing power. Thanks to improved mortgage affordability over the last six months, buyers can typically borrow around 20% more. This has fuelled a 30% jump in new first-time buyer mortgages, successfully getting thousands more onto the ladder.

The London Paradox: Affordability and Opportunity

While the national data is robustly positive, London—a key area of expertise for Fraser & Co—shows a different, nuanced picture.

The capital continues to face stiff affordability headwinds. Consequently, the average first-home price in London has actually fallen by 2.4% over the year. This doesn't signal a lack of demand; rather, it indicates FTBs in London are having to be more strategic and price-sensitive than any other group.

Regional Growth vs. London Strategy

The stark contrast between London and the rest of the UK is evident in regional price growth:
Northern Momentum: Affordable regions like the North East (up 10.2%) and Scotland (up 6.4%) are seeing huge price increases for first-time buyer properties. These areas are benefiting most directly from the 20% increase in national borrowing power, allowing buyers to confidently purchase homes in lower-value markets.
The London Approach: In contrast, London buyers must deploy a different strategy. With the average first-home price at over £420,000, Fraser & Co’s focus is on guiding clients towards areas where value can still be found—often within the new build market or in up-and-coming zones where properties are available at a substantial discount to the wider local average.

The traditional three-bedroom house is the national favourite, but in London, the declining demand for flats outside the capital is less pronounced due to the density and price points. The Fraser & Co team is uniquely positioned to advise on whether a flat or a house offers the best long-term investment, particularly when considering the diverse requirements of the new build sector.

Guidance from Fraser & Co

Whether you are looking for an affordable starter home in the rising commuter belts or a strategic investment property in Prime London, the market is moving quickly and is heavily stratified by region.

The takeaway for all prospective homeowners is clear: while improved affordability has opened the door for many, success hinges on local knowledge, particularly regarding the negotiation of discounts and navigating the complexities of high-value markets.

The Fraser & Co team specialises in matching buyers with their ideal properties, providing in-depth local expertise, and connecting clients with the right financial and legal services to ensure a smooth journey onto the property ladder.

Are you ready to make your first move in the London property market? Contact the Fraser & Co team today for personalised advice on finding a home that fits your budget and ambitions.