First-time buyer demand declined by 4% in April compared to the same month last year, according to data from Rightmove, though several regional markets have bucked the national trend with substantial growth.
West Oxfordshire recorded the highest increase, with demand for typical first-time buyer properties rising 45% year-on-year. The area saw a 37% increase in available first-time buyer-type homes and flat house prices, contributing to the market activity.
East Staffordshire followed with demand up 31%, whilst Bracknell Forest recorded a 28% increase.
Mortgage costs impact market
The average monthly mortgage payment for new first-time buyers now stands at £998, up from £904 in February. Despite these increased costs, the first-time buyer segment has demonstrated greater resilience than the broader property market.
Colleen Babcock, Head of Partner Marketing at Rightmove, said: “First-time buyers are more exposed to mortgage rate rises, so it was quite surprising to see this sector holding up more strongly than the wider market. While overall buyer demand is lower than last year, there are pockets of Great Britain seeing more activity, where local factors are making a real difference.”
The rising mortgage costs come as inflation trends continue to influence lending rates across the market.
Regional factors drive activity
Mary-Lou Press, President at NAEA Propertymark, attributed the performance to buyer determination and shifting priorities. “The resilience of the first-time buyer market, despite higher mortgage costs, reflects the determination many buyers still have to get onto the housing ladder, particularly in areas where affordability and choice have improved,” she said.
Press noted that buyers are becoming more value-driven and flexible on location. “Areas like West Oxfordshire, East Staffordshire and Bracknell Forest are attracting strong interest due to a mix of improved stock levels, stable pricing and good connectivity to larger employment hubs.”
The localised growth patterns contrast with broader affordability challenges affecting other regions, particularly in high-value markets.
Market outlook
The data suggests that whilst the first-time buyer market faces headwinds from increased borrowing costs, regional variations in housing stock availability and pricing stability are creating opportunities in specific locations. The performance of these hotspots indicates that connectivity to employment centres and relative affordability remain key factors driving first-time buyer activity.
