First-time buyers made up just over one in three (34.3%) purchases in January, as falls in mortgage rates have widened the pool of people able to get on the property ladder, according to Connells Group.
The property firm, which includes brands such as Barnard Marcus, Hamptons, and Bairstow Eves, said the percentage of first-time buyer sales agreed across Britain in January 2026 is the highest it has recorded in the month of January since its records started 20 years ago.
Aneisha Beveridge, research director at Connells Group, said: “After a fairly sluggish end to 2025 – not helped by the autumn budget casting a shadow over buying decisions – the new year has brought a shift in tone.
“January started quietly, partly due to how the holidays fell, but momentum built as the month progressed.”
She said that first-time buyers have benefited from falling mortgage rates, “particularly where higher loan-to-value products have become more competitively priced”.
Ms Beveridge added: “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.”
She said: “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 home ownership could gently ease pressure in the lettings market, taking a little of the heat out of rents if the trend continues.”
The research indicated that lower borrowing costs are also enabling some new buyers to shorten their mortgage terms.
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In January, 52% of first-time buyers opted for a mortgage lasting more than 30 years, compared with 55% a year earlier and 60% in 2023, Connells Group said.
But Ms Beveridge said that mortgage costs “aren’t the only barrier to homeownership”, adding: “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.”
The property firm’s figures indicated that nearly half of agreed sales in London in January were made to first-time buyers.
But it said this strength partly reflects higher transaction costs such as stamp duty acting as a brake on moving activity in London for existing homeowners, even as housing market conditions slowly improve.
The figures were released as separate research, commissioned by L&C Mortgages, indicated that more than nine in 10 (91%) borrowers aged 18 to 34 said they were charged a broker fee when taking mortgage advice.
This compared with 64% of those aged 45 to 54, and just 42% of borrowers aged over 55, according to the survey, carried out by Censuswide among 1,000 homeowners in December 2025 and January 2026.
David Hollingworth, associate director at L&C Mortgages, said: “Many younger buyers are already struggling with deposits, moving costs and rising living expenses.”
Here are the shares of agreed sales made by first-time buyers in January 2025, followed by January 2026, according to data from Connells Group:
London, 48.3%, 48.3%
West Midlands, 37.5%, 39.8%
East of England, 39.0%, 39.5%
East Midlands, 30.4%, 34.9%
South East, 28.8%, 34.9%
South West, 33.2%, 31.9%
North West, 31.7%, 29.9%
Scotland, 30.7%, 28.7%
Wales, 24.9%, 27.0%
North East, 23.0%, 21.7%
Yorkshire and the Humber, 25.9%, 21.7%