First-time buyers accounted for close to 40% of all property moves in 2025, and they are expected to remain one of the market’s most important buyer groups throughout 2026. In many regions, particularly outside the most expensive parts of the UK, first-time buyers are now driving transaction levels and shaping local market activity, which will continue into 2026 according to the Buy Association Group’s predictions.
After a period of economic uncertainty and higher borrowing costs, improving conditions such as lower mortgage rates have helped restore confidence among first-time buyers in the market. The result is a notable resurgence in first-time buyer activity with Nationwide stating that first-time buyer activity over the last year was around 20% higher than 2024 levels in their latest housing affordability report.
What’s driving first-time buyer growth?
Several economic and lending factors are working together to support first-time buyers.
Mortgage rates have fallen from their recent peak, improving affordability and increasing confidence among those who delayed purchasing decisions during periods of volatility. Greater rate stability has made monthly repayments more predictable, which is crucial for buyers entering the market for the first time.
Lending criteria have also eased. Many lenders have reintroduced more flexible products, including higher loan-to-income multiples and improved affordability assessments. This has widened access to mortgage finance for buyers who may have struggled to qualify under tighter conditions.
At the same time, wage growth has outpaced house price growth in several affordable regions. While house prices remain high in absolute terms, slower price growth combined with rising earnings has improved affordability ratios in parts of the Midlands, the North of England and Scotland.
Recent forecasts suggest that first-time buyers represented around 39 to 40% of all mortgaged purchases in 2025. In volume terms, this equates to hundreds of thousands of transactions, with some projections estimating close to 400,000 first-time buyer completions over the year. With transaction levels stabilising and borrowing conditions improving, this group is forecast to remain a major force in 2026.
A regional story
Affordability continues to vary significantly by region. London and the South East remained the least affordable areas according to the Buy Association Group, where higher property values continue to present challenges for those without substantial deposits or financial support.
In contrast, more affordable regions have seen stronger first-time buyer activity. Lower average property prices and improved earnings growth have helped to reduce the price-to-income ratio in these areas, supporting increased demand and transaction volumes.
This regional divergence means that many estate agents, particularly outside high-cost areas, are likely to see a growing proportion of first-time buyers in their pipeline over the next 12 months.
What this means for Estate Agents
An increase in first-time buyer transactions presents clear commercial opportunities. However, it also brings operational and compliance considerations.
First-time buyers often require more guidance than experienced movers. Many are unfamiliar with the practical and regulatory steps involved in purchasing a property. As a result, agents may find themselves spending more time supporting clients through processes such as:
- Source of Funds checks
- Gifted deposit verification
- Identity verification and Anti-Money Laundering compliance
These compliance requirements are essential, but they can create friction if not handled efficiently. Delays in collecting documentation or confusion around what is required can slow down transactions and increase administrative burden.
With close to two in five property moves involving first-time buyers, agencies must ensure their compliance processes are both robust and user-friendly.
Making the first purchase smooth and secure
A smooth compliance journey is particularly important for first-time buyers, who may already feel overwhelmed by the scale of their purchase. Clear communication and simple digital processes can make a significant difference to their overall experience.
Credas provides user-friendly identity verification solutions designed to help estate agents streamline onboarding while maintaining full compliance. By simplifying ID verification, supporting Source of Funds checks and enabling secure document submission, agencies can reduce unnecessary friction and keep transactions progressing.
As first-time buyers continue to represent a significant share of market activity in 2026, having efficient compliance systems in place is not just a regulatory requirement. It is a competitive advantage.
