First-time buyer enquiries down 27% as borrowing costs rise

More first-time buyers have put their moving plans on hold amid uncertainty over rising borrowing costs, according to new analysis from Zoopla.

There were 27% fewer enquiries for homes in the last week compared to the same period last year as buyers paused buying decisions in the wake of the Bank of England’s decision to raise the base rate to 4%.

Buyer enquiries are slowing across all types of purchases. Changes in buyer demand tend to be more volatile than changes in sales agreed which are 10.5% lower than last year in the week to 8th November 2026. 

Fewer sales means the number of homes available to buy is growing, up by 9% compared to this time last year, creating greater choice for buyers and weakening house price growth.

For first-time buyers who remain in the market and are ready to proceed, there are more affordable properties available to buy. The number of two-bedroom houses for sale has increased 14% year-on-year, while the number of homes priced below £200,000 is up 13%.

The gap between supply and sales is particularly pronounced in southern England, where the number of homes for sale had already been increasing ahead of the latest interest rate rise. The South East has the widest gap, with homes for sale up 12% and sales agreed down 16% year-on-year. House prices have fallen 0.6% over the same period.

In the East of England, supply has increased 17%, while sales agreed are down 8% and house prices have fallen 0.5%. The South West is experiencing similar conditions, with homes for sale up 12% and house prices down 0.4%.

The picture is different in northern England, where supply remains broadly unchanged and house prices continue to rise as the impact of higher mortgage rates has a lower cash cost than in southern England. Annual price growth stands at 3.2% in the North West and 2.4% in the North East, although sales agreed remain below last year's levels.

Richard Donnell, executive director at Zoopla, said: “First time buyers are the engine of the housing market accounting for 4 in 10 sales last year. Higher mortgage rates have reduced the buying power of all buyers by an average of 15% compared to the start of the year. Higher mortgage rates over the year have reflected expectations of further increases in the base rate, with the Bank of England decision last week making more buyers pause and wait.

"The good news for those ready to move is that there are more homes to choose from, particularly at the more affordable end of the market. Sellers need to recognise that buyers have more choice and pricing realistically is increasingly important."