Zoopla’s latest House Price Index found first-time buyers (FTBs) are targeting homes worth £10,000 more than last year, with average prices up 4.3% to £254,750.
This was nearly three times the rate of UK house price growth, which edged up 1.5% to £271,900.
There were 6% fewer FTBs in the market, but those who remained did not compromise on what they wanted to buy.
Sales agreed ran 1% ahead of last year, marking the first positive figure for 2026, despite buyer demand being down 10%.
Committed movers continued to agree to buy homes, supporting market activity.
Price rises were strongest in the North, Scotland and Wales, between 2% and 3.6%, while prices in London and the South East held flat or fell.
In London, FTB prices have topped £500,000 for the first time, now at £502,250, £15,000 higher than last year.
In Scotland, FTBs are seeking homes with average prices 7.9% higher than last year, and 7% higher in the West Midlands.
The South West saw the lowest increase at 1.9%.
Higher mortgage rates and economic uncertainty have cut FTB enquiries by 6%.
Those active in the market remain focused on buying three-bedroom houses outside London or flats in London, with property mix unchanged from last year.
The flow of new homes listed for sale is up 3.4% on last year, with more sellers entering the market.
In London, sales agreed are up 8%, though with 13% more homes for sale, buyers have greater negotiating power and price growth remains subdued.
Richard Donnell, executive director at Zoopla, said: “We are in the peak months for home buyers making offers and agreeing sales.
“Despite fewer buyer enquiries than last year, more sales are being agreed as committed movers press ahead as mortgage rates drift lower.
“Many households are understandably cautious given the wider uncertainty.”
Donnell added: “If you are thinking of moving, the most important step is understanding what is happening in your local market rather than relying on national trends.
“Getting advice from a local estate agent is important and for sellers in southern England, pricing correctly is the difference between moving and not moving this year.”
Reaction:
Nathan Emerson, CEO of Propertymark:
“Although overall buyer demand remains below last year’s levels, it is encouraging to see agreed sales edging ahead as committed movers continue to drive activity across the housing market.
“First-time buyers remain a crucial part of the market, and the fact that many are aiming for higher-value homes demonstrates ongoing confidence and determination to get onto the property ladder despite affordability pressures.
“However, higher borrowing costs and wider economic uncertainty continue to present challenges for many households, particularly across southern England, where affordability remains stretched.
“Buyers and sellers alike are increasingly relying on the expertise of local agents to navigate changing market conditions, price homes accurately, and make informed decisions based on local demand.
“As mortgage affordability improves gradually and more homes come to market, stability and confidence will remain key to sustaining momentum through the remainder of 2026.”
Marc von Grundherr, director of Benham and Reeves:
“London continues to demonstrate remarkable resilience and while headline house price growth across the capital remains largely flat, the fact that sales agreed are up 8% year-on-year tells a very different story beneath the surface.
“Buyers remain active, but they are also more price conscious and selective than they were during the market highs of recent years.
“At the same time, increased stock levels are giving them greater negotiating power and this is helping to keep price growth subdued despite strong levels of transactional activity.
“What’s particularly notable is the strength of the first-time buyer market, with average target purchase values now surpassing the £500,000 mark for the first time.
“This suggests that while some buyers may have stepped back due to higher borrowing costs, those who remain committed are still prepared to stretch for the right property in the right location.”
Verona Frankish, chief executive of Yopa:
“While there remains a degree of economic uncertainty, the latest market data shows that the UK property market continues to hold up remarkably well and, importantly, transactional activity is moving in the right direction.
“The fact that sales agreed have edged ahead of last year for the first time in 2026 is an encouraging sign that committed buyers and sellers are continuing to press ahead despite a more cautious wider backdrop.
“We’re also seeing the strongest levels of house price growth continue to come from more affordable northern markets where improved mortgage affordability has had the greatest impact.
“At the same time, first-time buyers remain highly motivated and are clearly unwilling to compromise when it comes to the type and quality of home they want to buy.
“Overall, this remains a market driven by necessity and long-term confidence rather than short-term speculation and that is helping to create a far more stable foundation for sustained market activity.”
Chris Hodgkinson, managing director of House Buyer Bureau:
“While the market has remained more resilient than many expected, the decline in buyer demand is still a very important warning sign and one that is likely to impact both transaction times and seller expectations over the months ahead.
“We’re increasingly seeing a market where committed buyers are still progressing purchases, but where a significant proportion of more hesitant or discretionary movers have stepped back to assess the economic outlook and direction of mortgage rates.
“This reduction in buyer activity inevitably creates a more drawn out sales process, particularly for sellers who fail to price realistically from the outset.
“As a result, many homes are taking longer to sell, reductions are becoming more common and overall market sentiment remains finely balanced.
“Whilst sales levels are holding steady for now, the market remains highly sensitive to affordability pressures and confidence levels and so any further economic uncertainty could quickly weigh on activity.”