First-time buyer demand eased during the second quarter of 2026 despite a number of major cities seeing a notable increase in buyer activity and demand remaining robust in several key markets.
Yopa analysed first-time buyer demand based on the proportion of homes listed under buying schemes that have already sold subject to contract as a percentage of total available stock and how this compares to both the previous quarter and the same period last year. The research also looked at the proportion of total homes currently listed for sale that are suitable for first-time buyers. Data covers Q2 2026 and compares market performance versus Q1 2026 and Q2 2025.
The research shows that across Great Britain as a whole 32.9% of first-time buyer suitable homes had found a buyer in Q2 2026, down from 34.8% in Q1 2026, a quarterly decline of 1.9 percentage points. Demand was broadly unchanged on an annual basis, sitting just 0.2 percentage points below the level recorded in Q2 2025.
Swansea has seen the largest quarterly increase in first-time buyer demand, with the proportion of suitable homes sold subject to contract climbing from 7.7% in Q1 to 40.0% in Q2, an increase of 32.3 percentage points.
Liverpool also recorded a significant uplift, with demand rising by 24.0 percentage points over the quarter to 60.8%, whilst Edinburgh saw demand increase by 14.7 percentage points to 69.2%. Bournemouth and Sheffield also posted notable quarterly improvements, with demand increasing by 11.5 and 8.5 percentage points respectively.
Despite mixed quarterly performance across Britain, Edinburgh is home to the strongest level of first-time buyer demand overall, with 69.2% of suitable homes having already found a buyer in Q2. Liverpool ranks second at 60.8%, whilst Bristol sits third where 50.5% of suitable homes have sold subject to contract. Sheffield and Bournemouth also recorded demand of 50%.
Whilst demand has softened nationally, the supply of first-time buyer suitable homes remains limited. Across Great Britain as a whole, such properties account for just 1.7% of all homes currently listed for sale, down from 2.1% in Q1 2026.
London and Southampton are home to the largest proportion of first-time buyer suitable stock, where such homes account for 1.7% of all properties currently listed for sale. Portsmouth ranks next at 1.6%, followed by Leicester at 1.5% and Bristol at 1.4%.
Several markets saw an increase in the availability of first-time buyer suitable homes versus the previous quarter, including Leicester, Manchester, Nottingham and Southampton. However, in many areas supply either remained unchanged or declined, highlighting the continued shortage of suitable stock available to those looking to take their first step onto the property ladder.
Verona Frankish, CEO of Yopa, said:
“While we've seen first-time buyer demand ease slightly at a national level during the second quarter, the underlying picture remains encouraging, particularly across a number of regional markets where buyer appetite has strengthened considerably.
“The fact that demand remains strong in cities such as Edinburgh, Liverpool and Bristol demonstrates that many first-time buyers are still actively looking to enter the market when the right opportunities are available.
“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 and increasing supply remains essential if we want to improve accessibility and maintain market momentum over the longer term.”
