First-time buyers are once again keeping the UK housing market moving. According to new data from Zoopla, they now account for 39% of all property sales and nearly half (49%) of new mortgages for home purchase – making them the most influential buyer group in the market right now.
At a time when overall market activity remains cautious, this cohort is quietly doing the heavy lifting, driven by improved affordability, increased borrowing power, and a growing determination to escape long-term renting.
What the latest data is telling us
Zoopla’s key takeaways (20 Oct 2025):
Borrowing power for first-time buyers is up 20% year-on-year, helping drive a 30% uplift in first-time buyer mortgages.
On average, first-time buyers are targeting homes priced 2.4% higher than last year – ahead of overall house price growth.
Regionally, the picture is even more striking. In the North East, first-time buyers are stretching furthest, targeting homes priced around 10.2% higher than a year ago. Meanwhile in London, affordability constraints and stamp duty pressures are pushing many buyers towards lower-value homes compared to last year.
The problem hasn’t changed: deposits
Here’s the catch: despite improved affordability on monthly repayments, the biggest barrier to homeownership still comes before the mortgage even begins. Saving a deposit while paying rent remains the number one obstacle for many aspiring buyers – particularly those without family support.
This is why national commentary continues to circle the same issue: many first-time buyers can afford the monthly cost of owning, but struggle to accumulate the large upfront lump sum needed to start.
HomeNow’s view
“We’re seeing huge numbers of people who are financially ready to own a home in every way except one, the deposit.
Our aim is to turn rent into a stepping stone, not a dead end, and give people a clear, realistic path to ownership.”
– HomeNow
HomeNow was built for households who can afford mortgage-style monthly payments but need time and structure to become fully mortgage-ready. Instead of renting indefinitely while trying to save a deposit, the model allows customers to move into a home now, rent for an agreed term, and receive a 5% deposit contribution based on the home’s value at the end of the plan (subject to the plan terms).
Why this matters now
Zoopla also highlights that almost 45% of first-time buyer enquiries are for three-bedroom houses, signalling long-term intent rather than short-term compromise. First-time buyers are motivated – and they’re active – but without realistic routes that address the deposit gap, too many will remain locked in the rental cycle.
The market is moving again. The question is whether the path to ownership can move with it.
