First-time buyer demand softens in Q3 – Yopa

“The fact that demand remains strong in cities such as Liverpool, Sheffield, Leicester and Manchester demonstrates that many first-time buyers are still actively looking to enter the market when the right opportunities are available. 

“At the same time, the significant variation between markets highlights that the experience of first-time buyers continues to differ considerably depending on where they are looking.”

Frankish added: “However, one of the biggest challenges continues to be the lack of suitable stock. 

“Across Britain, first-time buyer homes account for only a very small proportion of all properties available for sale. 

“While there has been a slight improvement in availability this quarter, increasing the supply of suitable homes remains essential if we want to improve accessibility and maintain market momentum over the longer term.”

She said: “The Government’s proposed new first-time buyer scheme could certainly help to reduce the upfront deposit barrier for some buyers, but there is also a risk that stimulating demand specifically within the new-build market could artificially inflate prices. 

“If that happens, some first-time buyers could find themselves more exposed to negative equity further down the line, particularly if those price gains prove difficult to sustain.”