First-time buyers now account for 48.3% of purchases in London, up from 22.4% a decade ago

by Aaron Strutt

Feb 04 2026

The latest Connells Group February market brief highlights that the UK housing market has kicked off 2026 with a surge in activity from first-time buyers. In January, buyers taking their first step onto the property ladder accounted for a record share of sales — the highest January level since Connells records began — supported by improving mortgage rates and stronger access to higher loan-to-value lending. The rise in first-time buyer participation is now helping drive broader market momentum.

Connells data highlights: 

• First-time buyers purchased 34.3% of homes sold across Great Britain in January - the highest share recorded in any January since its records began in 2006.
• In London, first-time buyers now account for 48.3% of purchases, up from 22.4% a decade ago, partly reflecting the fall in existing owners choosing to move.
• 93% of January’s first-time buyers secured a sub-5% mortgage rate - the highest share since Autumn 2022, and up from 67% in January last year. Meanwhile, 96% of movers secured a sub-5% rate last month, up from 83% in January 2025.
• Nearly one in four first-time buyers (24.2%) took out a 90%+ LTV mortgage last month, the highest proportion since 2008.
• Improving affordability saw fewer first-time buyers stretch their mortgage terms, with the share borrowing over 30 years edging down from last year’s peak.

Aneisha Beveridge, Research Director at Connells Group, said: “Falling mortgage rates, including the first sub-3.5% deals for some time, have been the main driver of early-year activity. First-time buyers have been the biggest beneficiaries, particularly where higher loan-to-value products have become more competitively priced. That’s widened the pool of people able to buy, and we’re also seeing more new purchasers shorten their mortgage term - a shift that can deliver substantial long-run savings. For example, moving from a 35 to a 30-year term on a typical £200,000 loan could save around £32,000 in interest if rates stay where they are today.

“Rising first-time buyer numbers should also help support overall transaction levels this year, especially at a time when existing homeowners are moving less often. And because many of these purchasers are currently renting, a steady transition into homeownership could gently ease pressure in the lettings market, taking a little of the heat out of rents if the trend continues."

Are there many mortgages to choose from?

Data from Moneyfacts shows the total number of mortgages on the market rose above 7,500 by the start of this month (February), meaning borrowers have over 1,000 more deals to consider than a year ago. This figure includes a record number of products available to first-time buyers with a 10% deposit.

Mortgages for first-time buyers with a 10% deposit now account for 13% of the residential mortgage market, while 5% deposit mortgages account for 7%. There are many competitively priced 15% and 20% deposit mortgages, but the most competitive rates are still available to those with a 30% or 40% deposit. 

Santander recently launched its ‘My First Mortgage’, which can finance up to 98% of an existing house in Great Britain at a fixed rate for five years. The bank also offers some of the lowest fixed rates starting from just over 3.5%. Here is Trinity Financial's pick of the best first-time buyer schemes. 

The Bank of England predicts that inflation will fall to its 2% target by later this spring, which it says should leave “scope for some further cuts to the Bank Rate this year”.

Source: Connells Market Brief and Moneyfacts.

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The information contained within was correct at the time of publication but is subject to change.

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