FTBs drive home sales to three-year high as house price growth slows – Zoopla
First-time buyers (FTBs) made up 39% of sales in 2025.
The latest UK House Price Index (HPI) from Zoopla showed housing sales hit 1.2 million in 2025, the highest level for three years.
Mortgage rates stabilised, helping incomes and mortgage affordability.
Higher sales were reported, but UK house price inflation slowed to 1.1% in November 2025.
First-time buyers (FTBs) made up 39% of sales in 2025.
The desire to move remained strong, but affordability was still a key issue.
House prices were projected to rise by 1.5% over 2026, with an estimated 1.18 million housing transactions.
The research found the north-south divide in price inflation was set to continue.
Richard Donnell, executive director at Zoopla, said: “We expect a stronger 2026 as buyers return to the market, with more homes for sale.
“Demand remains strong, but affordability constraints persist.
“For those buying their first home or looking to move up the ladder, house price growth will keep prices in check.”
Nathan Emerson, CEO at Propertymark, said: “We continue to see a housing market that is responding positively despite economic turbulence.
“Now that we have seen a further reduction in base rates down to 3.75%, this will hopefully spur first-time buyers to continue to drive the highest level of home moves as lower borrowing costs are easing monthly repayment pressures and improving affordability, particularly for those entering the market for the first time.
“The falls in rates have helped release some of the pent-up demand that built up towards the end of this year, supporting transaction levels as we move into 2026.”
Emerson added: “However, while activity is picking up, data shows that house price growth remains modest.
“With a good supply of homes available and affordability still a key constraint, especially in higher-priced areas, price rises are likely to remain measured rather than accelerate rapidly.”
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