UK housing market sees first‑time buyer demand dip as supply tightens

Estate agency Yopa reported that first‑time‑buyer demand across Britain fell to 32.9% of suitable homes in the second quarter of 2026, down from 34.8% in the preceding three months. Demand remained broadly unchanged year‑on‑year, but regional variations were stark: Edinburgh recorded the highest level at 69.2%, Liverpool at 60.8%, while Swansea saw a sharp rise from 7.7% to 40% quarter‑on‑quarter. Overall, homes aimed at first‑time buyers made up only 1.7% of all listings, down from 2.1% earlier in the year, highlighting a persistent supply shortage.

Propertymark’s May housing insight showed a modest easing in prospective‑buyer registrations, falling to an average of 64 per branch. Viewing activity stayed steady at 2.2 viewings per property, and the number of sales agreed remained at eight per branch. Stock levels improved slightly, with an average of 44 homes available per branch. Affordability pressures persisted, with 32% of adults reporting difficulty meeting rent or mortgage payments. Mortgage advances slipped in early 2026, while new mortgage commitments rose and arrears held steady. Most transactions continued to sell below asking price, and 40.4% of sales took longer than 17 weeks to complete.