Rising Home Prices Driven by Surge in First-Time Buyers

Over 4.8 million homeowners use MyHome to track their home’s value, build equity insights, and see what’s selling nearby, all with our tools that make moving decisions smarter and easier.

Despite higher prices in many areas, improved mortgage affordability means they’re making up the biggest share of home purchases across the UK.

According to our latest research, the average price of a first home now stands at £229,000 - up 2.4% over the last year. That rise outpaces the wider housing market, which grew by 1.3%. In other words, first-time buyers are driving activity more than any other group.

Borrowing power boosts first-time buyers

The main reason is borrowing power. Thanks to improved mortgage affordability over the past six months, buyers can now borrow around 20% more than before. That’s sparked a 30% jump in first-time buyer mortgages, helping thousands onto the ladder.

First-time buyers now account for 39% of all property sales and nearly half of all new mortgages (49%). It’s no surprise then that they’re shaping the market more than ever.

What are first-time buyers buying?

The three-bedroom house is the most popular choice, attracting 45% of first-time buyers. Flats, on the other hand, are slipping in demand, now accounting for just 29% of first-time buyer enquiries outside London.

Regional price trends: winners and strugglers

Across most of the UK, first-time buyer prices are rising faster than the overall market. The stand-out is the North East, where first-home prices have jumped 10.2% in the past year, compared with 2.4% for all homes. Scotland, Yorkshire and the Humber, and the North West are also seeing above-average growth.

In contrast, London tells a different story. With high stamp duty and tougher affordability, the average first-home price in the capital has actually fallen by 2.4% over the year. To make ends meet, London’s buyers are targeting homes priced well below local averages – typically around 21% cheaper.

Region

Avg first-time buyer house price growth 

Avg house price growth of all homes

Avg cost of first-time buyer home

Avg cost of all homes

Price difference (%)

North East

10.2%

2.4%

£134,800

£146,600

8%

Scotland

6.4%

2.1%

£146,600

£170,500

13%

Yorkshire & Humber

6.0%

1.9%

£167,700

£192,500

15%

Wales

4.0%

2.1%

£172,800

£207,209

17%

North West

5.1%

2.7%

£179,300

£201,281

11%

West Midlands

2.7%

1.6%

£208,000

£233,902

11%

East Midlands

1.7%

1.0%

£210,000

£231,006

9%

South West

1.9%

0.3%

£245,000

£312,006

21%

Eastern England

0.7%

0.8%

£316,900

£337,498

6%

South East

2.7%

0.2%

£323,300

£385,257

16%

London

-2.4%

0.2%

£420,600

£534,038

21%

UK

2.4%

1.3%

£229,000

£268,449

15%

Affordability gap shapes choices

On average, first-time buyers look for homes about 15% below the local market price. That discount grows in regions where affordability is tight, such as the South East (21%), Wales (17%), and of course London (21%).

Richard Donnell, our Executive Director, says this variation reflects how affordability shapes buying decisions. “First-time buyers have had a 20% boost to affordability over the last six months. This is enabling them to look at higher-value homes in the more affordable parts of the country. In contrast, in London and southern England, affordability remains a big challenge, so buyers are seeking cheaper options despite the extra borrowing capacity.”

What it means for first-time buyers

Whether prices are climbing or easing, first-time buyers remain the backbone of the housing market. With greater borrowing power and determination, they’re proving that 2025 could be the year many more step onto the ladder - even if they’re climbing it in slightly different ways depending on where they live.

 

Key takeaways

  • First-time buyers now make up 39% of all home sales and nearly half of new mortgages
  • The average first-time buyer home costs £229,000, up 2.4% in a year, outpacing the wider market
  • Borrowing power has risen 20%, fuelling a 30% jump in first-time buyer mortgages
  • Prices are up 10.2% in the North East but down 2.4% in London

 

by Blackstones

Costly mistakes landlords make and how to avoid them

Landlords are facing one of the most significant regulatory shake-ups in decades, bringing increased risk if you get things wrong. Here’s how to sidestep common mistakes and stay ahead of the regulatory curve. make the sentences diffrent

Being a landlord today is not what it was ten - or even five - years ago. The regulatory landscape has become more complex, tenant expectations are higher than ever and the financial risks of getting things wrong have increased significantly.

Yet many landlords, whether self-managing or working with the wrong agent, continue to fall into the same traps. These mistakes can cost time, money and even your ability to regain possession of your property.

Here are five of the most common pitfalls we see and how a great letting agent can help you sidestep them entirely.

1. Falling behind on compliance in an era of reform

Landlords are navigating one of the most significant regulatory shake-ups in decades.

The Renters Rights Bill will abolish Section 21 evictions - making legal compliance not just important, but essential for protecting your ability to regain possession through legitimate grounds.

What’s more, other stakes are rising too:

A great letting agent doesn’t just help you tick boxes - they stay ahead of the regulatory curve. They maintain airtight records, manage renewals and inspections, and keep you informed on upcoming obligations so you don’t get caught out when the rules change.

2. Skipping robust tenant referencing

A rushed tenancy can quickly become a costly one. Robust referencing is not just about credit scores - it’s a multi-layered process designed to assess a tenant’s reliability, risk and long-term suitability.

True due diligence includes:

  • Affordability checks, based on income vs rent ratios.

  • Credit history, including CCJs, defaults, and payment patterns.

  • Employer references confirming stable and ongoing employment.

  • Landlord references verifying past behaviour, payment history, and property condition.

  • Identity and fraud checks to confirm legitimacy.

  • Where appropriate, guarantor vetting and documentation.

Cutting corners here risks arrears, evictions and damage - not to mention stress.

Experienced agents use specialist referencing providers and ensure each application is rigorously assessed before any tenancy agreement is signed. Many also offer insurance-backed rent guarantees, giving you an added layer of protection.

 

3. Neglecting repairs and preventative maintenance

It’s easy to delay maintenance in the short term - but this often leads to higher costs and legal issues later. In today’s climate, that can be dangerous.

The introduction of Awaab’s Law, along with the revised HHSRS and Decent Homes Standard, means landlords now have a legal responsibility to act quickly and transparently on disrepair, particularly on damp, mould and hazards affecting tenant health.

That means you must:

  • Act swiftly on tenant-reported issues

  • Keep detailed logs of communication, inspections and remedial action

  • Maintain proof of resolution timelines, especially for hazards

  • Use qualified, insured contractors—and track warranties and follow-ups.

Missing any of these steps risks not only financial penalties, but also reputational damage as a landlord.

Top-tier agents have structured workflows to manage and escalate maintenance issues efficiently. They keep digital records, proactively schedule inspections, and work only with vetted, reliable contractors. This isn’t just good management, it’s legal protection.

4. Overlooking proper insurance cover

A surprisingly common oversight among landlords is underinsurance - or worse, assuming a standard home policy is enough.

In reality, landlords need specialist cover for:

  • Buildings & contents, tailored to rental properties.

  • Public liability, in case of injury or damage

  • Legal expenses cover for disputes and possession claims

  • Rent guarantee insurance - particularly useful in today’s economic climate

  • Loss of rent due to major incidents or voids caused by damage.

Professional agents work with trusted insurance providers to ensure you have comprehensive protection. They’ll also flag when your cover might be inadequate for your property type, tenancy model or legislative changes.

5. Choosing the wrong agent - or going it alone

Not all letting agents are created equal. Many landlords assume the role of an agent is simply to find tenants and collect rent.

But a truly great agent is a strategic partner, who will:

  • Navigate compliance and mitigate legal risks

  • Ensure tenant satisfaction and tenancy longevity

  • Minimise void periods through smart marketing and onboarding

  • Deliver long-term asset performance and portfolio insight.

How to spot the right letting agent for you

The key things to look for when finding a letting agent are:

  • Membership of Propertymark, Safeagent, or similar

  • Client Money Protection and transparent fee structures

  • Investment in tech platforms for transparency and efficiency

  • A strong reputation, backed by reviews and industry recognition.

Final thoughts

The UK rental sector is evolving fast and the margin for error is shrinking. Whether you’re an accidental landlord or have a growing portfolio, it’s time to treat your rental properties like a professional business.

Avoiding these five common mistakes isn’t just about protecting income. It’s about delivering a better experience for tenants, protecting your reputation and positioning yourself for long-term success.

And the best part? You don’t have to do it alone. The right letting agent can handle the heavy lifting, giving you confidence, compliance and clarity every step of the way.

 

Key takeaways

  • Legal compliance is essential to protect your ability to regain possession, particularly with the upcoming abolition of Section 21 notices.
  • Robust tenant referencing will help you assess a tenant’s risk and suitability - avoiding arrears, evictions and damage.
  • Timely repairs and maintenance can help you avoid financial penalties as well as reputational damage.
  • Proper insurance cover ensures adequate protection for your property type and tenancy model.
  • Choosing the right letting agent can help you navigate the changing regulatory landscape while protecting your income providing a better tenant experience and setting you up for long-term success.

by Blackstones