First-time buyer demand increased in the first quarter of 2026, according to research from Yopa, with a higher proportion of suitable homes securing buyers compared to the previous quarter.

The analysis found that 34.8% of homes deemed suitable for first-time buyers had sold subject to contract in Q1, up from 32.8% in Q4 2025. This represents a quarterly increase of 2.1 percentage points.

At a regional level, Sheffield recorded the most significant rise in demand, with the proportion of such homes sold subject to contract climbing from 18.2% to 41.5% over the quarter. Edinburgh also saw a notable increase, rising from 35.3% to 54.5%, while Cardiff recorded growth from 22.2% to 33.3%.

Further gains were seen in Portsmouth and Plymouth, where demand rose by 10.9 and 9.0 percentage points respectively.

Despite these quarterly improvements, Newcastle remains the strongest market overall, with 55.0% of first-time buyer suitable homes already sold subject to contract. Edinburgh follows at 54.5%, while Leicester ranks third at 51.5%.

However, the report highlights a continued shortage of suitable stock. Across Britain, homes appropriate for first-time buyers account for just 2.1% of all properties currently listed for sale. While this marks a marginal increase from 1.9% in the previous quarter and 1.8% a year earlier, supply remains limited.

Portsmouth has the highest proportion of such stock, where first-time buyer suitable homes represent 3.4% of all listings. London ranks second at 1.7%, followed by Bristol at 1.6%.

Verona Frankish, chief executive officer at Yopa, said: “It’s great to see that confidence amongst first-time buyers is building, with our research showing that demand has picked up during the first quarter of the year.

“This is despite the fact that mortgage rates haven’t fallen as quickly as many may have expected. However, the landscape is far more favourable than it was a year ago and this is clearly being reflected by the uptick in first-time buyer activity.

“Whilst we’ve also seen a marginal improvement in the availability of first-time buyer suitable homes, supply remains extremely limited and accounts for only a very small proportion of the market overall.

“So whilst confidence is returning, increasing the number of suitable homes available remains key to sustaining this momentum.”