First-time buyers now account for 34.3 percent of all homes sold across Great Britain, the highest share since 2006 according to new research from Connells Group and Hamptons. The surge in first-time buyer activity signals a structural shift in the housing market that could ease pressure on the private rented sector.
London leads the first-time buyer surge
In the capital, first-time buyers represented 48.3 percent of property purchases in January, compared with just 22.4 percent a decade ago. The data shows a fundamental change in who is buying homes, with existing homeowners moving less frequently and new entrants increasingly dominating transaction volumes.
For landlords, this trend has direct implications. As renters transition into homeownership, competition for tenants may begin to soften after years of supply shortages. The shift aligns with recent data showing rental inflation cooling below wage growth for the first time in several years.
Mortgage rates driving the shift
The research reveals that 93 percent of first-time buyers secured mortgage rates below five percent in January, the highest proportion since autumn 2022 and a significant increase from 67 percent a year ago. Sub-3.5 percent deals have returned to the market for the first time in two years, making homeownership more accessible for renters with deposit savings.
High loan-to-value products are also becoming more competitive, with 24.2 percent of first-time buyers taking out mortgages at 90 percent LTV or higher – the largest share since 2008. As we noted in our analysis of BTL lenders cutting rates, the mortgage market is loosening across all segments.
What this means for landlords
Aneisha Beveridge, Research Director at Connells Group, said first-time buyers have been the biggest beneficiaries of falling rates, particularly where higher loan-to-value products have become more competitively priced. She added that rising first-time buyer numbers could support overall transaction levels in 2026, particularly as existing homeowners move less frequently.
Beveridge noted that the transition of renters into homeownership could potentially ease pressure in the lettings market if the trend continues. For landlords operating in areas with high first-time buyer activity, tenant turnover may increase as renters save deposits and exit the sector. Full details are available in the Hamptons Monthly Lettings Index.
Editor’s view
A rental market that loses tenants to homeownership is not a crisis – it is a correction. Landlords who worry about tenant supply may find the real challenge is keeping rents competitive as the balance of power slowly shifts.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 February 2026
Sources: Connells Group, Hamptons Research
Related reading: Rental inflation drops below wages as market cools
