Third of home sales in January were to first-time buyers, says property firm

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First-time patrons made up simply over one in three (34.3%) purchases in January, as falls in mortgage charges have widened the pool of individuals capable of get on the property ladder, in accordance with Connells Group.

The property agency, which incorporates manufacturers akin to Barnard Marcus, Hamptons, and Bairstow Eves, mentioned the share of first-time purchaser gross sales agreed throughout Britain in January 2026 is the best it has recorded within the month of January since its data began 20 years in the past.

Aneisha Beveridge, analysis director at Connells Group, mentioned: “After a reasonably sluggish finish to 2025 – not helped by the autumn finances casting a shadow over shopping for choices – the brand new 12 months has introduced a shift in tone.

“January began quietly, partly attributable to how the vacations fell, however momentum constructed because the month progressed.”

She mentioned that first-time patrons have benefited from falling mortgage charges, “notably the place increased loan-to-value merchandise have turn out to be extra competitively priced”.

Ms Beveridge added: “That’s widened the pool of individuals capable of purchase, and we’re additionally seeing extra new purchasers shorten their mortgage time period – a shift that may ship substantial long-run financial savings.”

She mentioned: “Rising first-time purchaser numbers must also assist assist general transaction ranges this 12 months, particularly at a time when present householders are shifting much less typically.

“And since many of those purchasers are at the moment renting, a gradual transition into residence possession might gently ease stress within the lettings market, taking a bit of of the warmth out of rents if the pattern continues.”

The analysis indicated that decrease borrowing prices are additionally enabling some new patrons to shorten their mortgage phrases.

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In January, 52% of first-time patrons opted for a mortgage lasting greater than 30 years, in contrast with 55% a 12 months earlier and 60% in 2023, Connells Group mentioned.

However Ms Beveridge mentioned that mortgage prices “aren’t the one barrier to homeownership”, including: “Transaction prices – notably stamp responsibility – stay a big deterrent for a lot of present householders, that means these structural constraints are prone to hold a lid on mover exercise whilst circumstances slowly enhance.”

The property agency’s figures indicated that almost half of agreed gross sales in London in January had been made to first-time patrons.

But it surely mentioned this power partly displays increased transaction prices akin to stamp responsibility performing as a brake on shifting exercise in London for present householders, whilst housing market circumstances slowly enhance.

The figures had been launched as separate analysis, commissioned by L&C Mortgages, indicated that greater than 9 in 10 (91%) debtors aged 18 to 34 mentioned they had been charged a dealer price when taking mortgage recommendation.

This in contrast with 64% of these aged 45 to 54, and simply 42% of debtors aged over 55, in accordance with the survey, carried out by Censuswide amongst 1,000 householders in December 2025 and January 2026.

David Hollingworth, affiliate director at L&C Mortgages, mentioned: “Many youthful patrons are already fighting deposits, shifting prices and rising dwelling bills.”

Listed below are the shares of agreed gross sales made by first-time patrons in January 2025, adopted by January 2026, in accordance with knowledge from Connells Group:

London, 48.3%, 48.3%

West Midlands, 37.5%, 39.8%

East of England, 39.0%, 39.5%

East Midlands, 30.4%, 34.9%

South East, 28.8%, 34.9%

South West, 33.2%, 31.9%

North West, 31.7%, 29.9%

Scotland, 30.7%, 28.7%

Wales, 24.9%, 27.0%

North East, 23.0%, 21.7%

Yorkshire and the Humber, 25.9%, 21.7%

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