Can the government’s new scheme boost first-time buyer demand?

First-time buyer demand eased during the third quarter of 2026, with demand falling slightly across Great Britain as a whole, new analysis from Yopa shows.

But whilst Andy Burnham’s announcement to bring back Help to Buy could help boost first-time buyer demand, Yopa says this only addresses part of the problem, as first-time buyer suitable homes currently account for just 1.8% of current for sale stock.

The research shows that across Great Britain as a whole, 31.7% of first-time buyer suitable homes had found a buyer in Q3, down from 32.9% in Q2. Demand was also broadly unchanged on an annual basis, sitting just 0.6 percentage points below the level recorded in Q3 2025.

Leicester has seen the largest quarterly increase in first-time buyer demand, with the proportion of suitable homes sold subject to contract climbing from 37.5% in Q2 to 44.6% in Q3.

Manchester also recorded a notable uplift, with demand rising by 3.3 percentage points over the quarter to 41.1%, whilst Portsmouth saw demand increase by 2.4 percentage points to 23.2%.

Despite mixed quarterly performance across Britain, Liverpool is home to the strongest level of first-time buyer demand overall, with 51.0% of suitable homes having already found a buyer in Q3. Sheffield ranks second at 44.7%, whilst Leicester sits third where 44.6% of suitable homes have sold subject to contract. Bournemouth and Manchester also recorded demand above 40%, at 41.7% and 41.1% respectively.

Whilst demand has softened nationally, the supply of first-time buyer suitable homes remains limited. Across Great Britain as a whole, such properties account for 1.8% of all homes currently listed for sale, up slightly from 1.7% in Q2 2026 but unchanged from the same period last year.

Plymouth is home to the largest proportion of first-time buyer suitable stock, where such homes account for 2.1% of all properties currently listed for sale. Southampton ranks next at 2.0%, followed by Portsmouth at 1.9% and London at 1.8%.

Several markets saw an increase in the availability of first-time buyer suitable homes versus the previous quarter, including Newcastle, Plymouth, Portsmouth, Edinburgh, Southampton, Liverpool, and Bristol. However, in many areas supply either remained unchanged or declined, highlighting the continued shortage of suitable stock available to those looking to purchase their first home.

Verona Frankish, CEO of Yopa, commented: “While we've seen first-time buyer demand ease slightly at a national level during the third quarter, the underlying picture remains mixed, with a number of regional markets continuing to demonstrate strong levels of buyer activity.

"The fact that demand remains strong in cities such as Liverpool, Sheffield, Leicester and Manchester demonstrates that many first-time buyers are still actively looking to enter the market when the right opportunities are available. At the same time, the significant variation between markets highlights that the experience of first-time buyers continues to differ considerably depending on where they are looking.

"However, one of the biggest challenges continues to be the lack of suitable stock. Across Britain, first-time buyer homes account for only a very small proportion of all properties available for sale. While there has been a slight improvement in availability this quarter, increasing the supply of suitable homes remains essential if we want to improve accessibility and maintain market momentum over the longer term.

"The government’s proposed new first-time buyer scheme could certainly help to reduce the upfront deposit barrier for some buyers, but there is also a risk that stimulating demand specifically within the new-build market could artificially inflate prices. If that happens, some first-time buyers could find themselves more exposed to negative equity further down the line, particularly if those price gains prove difficult to sustain.”