First-time buyers are targeting pricier homes even as broader buyer demand softens, with the average value of a starter purchase rising to £254,750 – up 4.3 percent year on year, according to Zoopla’s latest house price index.
That increase is running well ahead of wider UK house price growth of 1.5 percent. Sales agreed are also 1 percent ahead of last year, even though overall buyer demand is down 10 percent, which suggests the people still moving are more committed and often willing to stretch further.
For landlords, that matters in two ways. First, it hints at a resale market that is still functioning for well-priced stock. Second, it shows would-be owner-occupiers are still pushing into the market despite mortgage costs, which may cap how far rental demand can run in some areas if affordability improves further.
Committed buyers are doing more of the lifting
Zoopla’s figures suggest there is still enough confidence in the market to keep transactions moving, but not enough to support broad-based price acceleration. In practice, that gives buyers negotiating power while still allowing sellers to transact if their expectations are realistic.
London remains a striking example. The average property targeted by first-time buyers in the capital has moved above £500,000, yet headline prices remain broadly flat as supply builds. That combination matters for landlords weighing exits, incorporations or trading stock between regions.
This follows Landlord Knowledge’s coverage of ONS data showing rents rising while house prices stalled, and earlier reporting on landlords buying more as investors traded stock. The latest Zoopla figures fit that pattern: transactions are still happening, but they are being driven by buyers with clearer intent rather than a broad market rush.
What it means for landlord strategy
Landlords looking to sell should not read modest national growth as a green light to overprice. The more useful takeaway is that buyer appetite still exists for the right homes in the right locations. Smaller flats in slower southern markets may still need sharper pricing, while more affordable regions continue to post firmer growth.
For investors planning acquisitions, the data is a reminder that competition from first-time buyers has not disappeared. In some markets it may become more important, especially where mortgage affordability improves faster than rental yields.
There is also a regional warning inside the numbers. The strongest growth is still concentrated in more affordable areas across northern England, Scotland and Wales. Landlords relying on flat price growth in expensive southern markets may need to lean harder on yield, asset management and refinance discipline. Zoopla’s latest market update is available in its official house price index.
What this means for landlords
- If you’re selling: realistic pricing still matters more than broad national headlines.
- Watch for: whether improved mortgage affordability brings more first-time buyers into your local market this summer.
- Bottom line: the sales market is still moving, but landlords need to judge strength street by street, not by UK averages alone.
Editor’s view
The useful part of this report is not the modest national growth figure. It is the sign that committed buyers are still active while casual demand falls away. For landlords, that creates opportunity – but only if pricing and expectations are grounded in local reality.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 28 May 2026
Sources: Zoopla
Related reading: ONS: UK rents rise 3.5% as house prices stall
