Demand from first-time buyers across Britain faltered in the second quarter of 2026, a modest decline from the previous quarter's sales. Despite this dip, the annual picture remains relatively stable, with just a 0.2 percentage point decrease from the same period last year.
The research, conducted by estate agency Yopa, analysed properties listed under government and industry schemes. The analysis found that in Q2, 32.9% of homes deemed suitable for first-time buyers were sold subject to contract – down from 34.8% in Q1. While quarterly fluctuations occur, regional variations reveal areas where demand surged.
Edinburgh continues to lead the country with a strong first-time buyer demand, reaching 69.2%, closely followed by Liverpool at 60.8%. Bristol saw demand rise to 50.5%. Swansea's quarterly increase was notable, soaring from 7.7% in Q1 to 40% in Q2. Meanwhile, Liverpool and Edinburgh both experienced significant rises of 24 percentage points and 14.7 percentage points respectively.
The severe shortage of suitable housing stock remains a critical factor impacting the market. According to Yopa's research, properties tailored for first-time buyers now account for just 1.7% of all homes listed for sale across Britain – a decrease from 2.1% in Q1. This persistent supply constraint affects not only market accessibility but also has broader implications for achieving housing delivery targets.
Verona Frankish, Yopa's Chief Executive, highlighted the ongoing challenge: “While demand eased slightly at a national level during Q2, regional markets show considerable strength.” She stressed that increasing suitable stock is essential to improve accessibility and maintain market momentum. The supply shortage is compounded by increased activity from landlords expanding portfolios, competing for entry-level properties as development finance supports new housing projects.