2026 started on a high note for first-time buyers. These property-owning virgins accounted for more than a third of all homes sold across Great Britain in January, according to recent research. In London, first-time buyers accounted for nearly half of all purchases.
This isn’t just a blip, but the first shoots of what is expected to be a strong year for first-time buyers. With several positive factors at play, it seems that for Spring 2026, opportunity is finally blooming.
Improved affordability
Continued improvements in mortgage affordability are particularly beneficial for first-time buyers. Interest rate cuts, the most recent of which was in December, have helped to bring mortgage rates down to levels close to those seen before September 2022’s mini-budget. This has given first-time buyers increased confidence to proceed with purchases when previously high interest rates and inflation had priced them out.
Affordability has also improved as a result of reviews of the loan-to-income cap and stress testing. This has enabled buyers to borrow more and access more competitive deals than they have for a long time.
Meanwhile, in October 2025, the government announced proposals to transform homebuying and selling by slashing the drawn-out, costly process of buying a home by four weeks. It claims this could save first-time buyers up to £710 on average.
Higher earnings
Mortgage affordability has also been aided by wage increases, with average earnings up by 4.7% year-on-year and around 17% over the last three years, according to Rightmove. This compares to a 1.5% of cumulative property price growth over the same period.
Greater property availability
First-time buyer opportunities are also boosted by the number of properties available, currently at an 11-year high, according to Rightmove. This may also include ex-rental properties coming to market as landlords reassess options ahead of the Renters’ Rights Act, which comes into force from May 1.
Asking price growth slowing
The greater availability of properties also means that asking price growth is sluggish, with February’s prices in line with the same time last year and again boosting affordability to buy. Rightmove is predicting asking price growth at 2% for 2026, Nationwide between 2% and 4%.
Hopeful first-time buyers
Meanwhile, some first-time buyers could be closer to their first purchase than they think, according to recent research from the Building Societies Association. It found that two-thirds of potential first-time buyers realised they could buy sooner than they’d thought, with mortgage options from building societies that required only low or no-deposit. Nearly half (47%) hadn’t spoken to a lender or mortgage broker to examine their options.
For more information on how we can assist you on your sales journey, please contact one of our branches in Essex, London or Hertfordshire today. We also offer a free and instant online valuation to give you an idea of how much your home could be worth on the current market.
