Homes snapped up in hours as first-time buyers drive the market
Yorkshire estate agents say first-time buyers have returned to the market in growing numbers at the start of 2026, with strong competition for lower-priced homes and multiple offers becoming increasingly common in some areas.
From Leeds city centre to market towns, agents report heightened demand from buyers looking to secure their first home after a subdued end to last year.
The renewed activity comes as national data suggests first-time buyer confidence is improving, even as structural pressures in the housing market persist.
First-time buyers accounted for just over a fifth of property purchases in Yorkshire and the Humber in January, according to data from Connells Group.
They made up 21.7 per cent of agreed sales in the region, down from 25.9 per cent a year earlier. However, estate agents say buyer confidence has returned strongly at the start of this year, particularly for homes priced below £250,000.
In Leeds city centre, Jonathan Morgan, from Zenko City Living, says first-time buyers now dominate activity. “So far this year, 62 per cent of people we have viewed with have been first time buyers. This is up from around 50 per cent in January 2025,” he says.
“Whilst most are reliant on a mortgage, there has been a marked increase in first time buyers whose parents are paying in cash.”
Across West Yorkshire, agents report similar patterns. Gavin Townsend, from Dacre, Son & Hartley’s Morley office, says: “We recently listed a house and within 48 hours we’d arranged 12 viewings and generated eight offers, all from first time buyers.”
He adds that demand is strongest for homes priced up to £250,000, helped by a rise in properties coming to market as landlords exit the sector. “The fact that lots of landlords are selling homes in this sector of the market means there’s plenty of choice and especially for those with deposits of 15 to 20 per cent, although there are mortgage deals available for those with 10 per cent and this is also helping to drive demand.”
In Bingley, Daniel Elven, also from Dacre, Son & Hartley, says demand is outstripping supply for character homes in popular locations. “The first time buyer market is definitely growing in 2026 and we have lots of buyers registered with us looking for homes priced up to £200,000,” he says.
“Most want two or three bedroom character terrace houses close to good amenities. We listed one such home just over a week ago in central Bingley with a £190,000 guide price and arranged 12 viewings for first time buyers and are now negotiating multiple offers as a result.”
However, he warns that a shortage of suitable stock is limiting choice. “Buyer interest is outweighing supply, but this should improve as spring approaches,” he says.
Mark Manning, managing director of Manning Stainton, adds: “We’ve seen the number of first-time buyers entering the market steadily increase over the past year, which has coincided with falling interest rates.”
Nationally, Connells Group says first-time buyers made up 34.3 per cent of all purchases in January, the highest proportion recorded for the month since its records began 20 years ago. The firm says falling mortgage rates and more competitive high loan-to-value products has widened access to homeownership.
Aneisha Beveridge, research director at Connells Group, says: “We're also seeing more new purchasers shorten their mortgage term - a shift that can deliver substantial long-run savings.”
Connells says that in January 52 per cent of first-time buyers took out mortgages lasting more than 30 years, down from 55 per cent a year earlier and 60 per cent in 2023.
Aneisha adds that rising first-time buyer numbers could help support transaction levels more broadly. “Especially at a time when existing homeowners are moving less often,” she says.
“And because many of these purchasers are currently renting, a steady transition into home ownership could gently ease pressure in the lettings market, taking a little of the heat out of rents if the trend continues.”
However, she cautions that mortgage affordability is not the only challenge facing buyers. “Transaction costs - particularly stamp duty - remain a significant deterrent for many existing homeowners, meaning these structural constraints are likely to keep a lid on mover activity even as conditions slowly improve.”
Separate research commissioned by L&C Mortgages highlights further pressures on younger buyers. A survey of 1,000 homeowners found that 91 per cent of borrowers aged 18 to 34 were charged a broker fee when taking mortgage advice, compared with 64 per cent of those aged 45 to 54 and 42 per cent of borrowers over 55.