First-Time Buyers Are Making A Stand

FIRST-TIME BUYERS (FTBs) ARE LEADING THE CHARGE SO FAR IN 2026 Welcome to this 3-minute market update. If you’ve been waiting for a sign to start your home-buying journey, February 2026 might just be it. For the first time in two decades, first-time buyers (FTBs) are the most active group in the UK property market. THE ‘POWER’ SHIFT In January 2026, FTBs accounted for 34.3% of all home purchases across Great Britain. This is the highest share recorded since 2006. In London, the numbers are even more staggering: nearly half (48.3%) of all homes sold last month went to first-time buyers. Why the sudden surge? Experts suggest that while existing homeowners are staying put due to economic caution, new buyers are finding a "sweet spot" created by cooling mortgage rates and wages that are finally growing faster than house prices. THE ‘SUB 5%’ CLUB Mortgage conditions are looking significantly friendlier than they did a year ago. The Milestone: 93% of FTBs secured a mortgage rate below 5% last month. The Lowest Deals: Some lenders have even reintroduced rates as low as 3.5%, providing a huge boost to monthly affordability which you can cross check against what you pay in rent using our RENT v BUY calculator (www.tenant2owner.co.uk). Deposit Reality: The average 10% deposit for a typical FTB property currently sits at around £23,000. While that’s still a mountain to climb, the availability of 95% and 100% mortgages has reached its highest level since 2008, meaning you might need no deposit to get started. A QUICK TRIP THROUGH TIME To put today’s market into perspective, did you know that in 1918, the UK was a nation of renters? Back then, 75% of people rented, and only 25% owned their homes. The "cult of home ownership" didn't truly take off until after WWII. Interestingly, in 1952 (when the late Queen came to the throne), the average house cost just £2,000—roughly £56,000 in today's money! TOP TIPS FOR FEBRUARY 2026 Regional Winners: If you’re looking for value, it would seem that the North West and Scotland are seeing robust growth but remain much more affordable than the South. Scheme Spotlight: Don’t forget the "Freedom to Buy" scheme (the permanent mortgage guarantee) which helps lenders offer those crucial 5% deposit deals. The "LISA" Boost: If you're under 40, it would appear that a Lifetime ISA remains the best "free money" hack, giving you a 25% government bonus on your savings.