First-time buyer enquiries a quarter lower than last year as higher borrowing costs put moving plans on ice

UNDER EMBARGO UNTIL 00.01 FRIDAY 13 NOVEMBER 2026

First-time buyer enquiries a quarter lower than last year as higher borrowing costs put moving plans on ice

The gap between housing supply and demand continues to widen as sales slow

• First-time buyer enquiries are a quarter (27 per cent) lower than last year in the wake of the Bank of England's decision to raise the base rate to four per cent
• As a result, the housing market has slowed as buyers delay moving plans, with sales agreed down 10.5 per cent on last year
• Fewer sales has seen an increase in supply with the number of homes for sale up nine per cent year-on-year
• Southern England sees the greatest imbalance, with house prices falling as supply increases, while house prices continue to rise across northern England

Under embargo until 00.01 Friday 13 November 2026, London: More first-time buyers have put their moving plans on hold amid uncertainty over rising borrowing costs, in the wake of the Bank of England's decision to raise the base rate to four per cent. There were 27 per cent fewer enquiries for homes in the last week compared to the same period last year as buyers paused buying decisions, according to new analysis from Zoopla, one of the UK's leading property websites.

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 percent lower than last year in the week to 8 November 2026. Fewer sales means the number of homes available to buy is growing, up by nine per cent 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 per cent year-on-year, while the number of homes priced below £200,000 is up 13 per cent, giving buyers greater choice and potentially more negotiating power.

Southern England sees greatest slowdown as supply outpaces sales

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 per cent and sales agreed down 16 per cent year-on-year. House prices have fallen 0.6 per cent over the same period.

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

Table 1: Regional housing market trends: prices, supply and sales

| Region | Annual house price change | Annual change in homes for sale | Annual change in sales agreed | |---|---|---|---| | South East | -0.6% | +12.4% | -16.2% | | East of England | -0.5% | +17.0% | -7.6% | | North East | +2.4% | +0.1% | -23.5% | | South West | -0.4% | +12.3% | -8.8% | | East Midlands | +1.0% | +8.3% | -11.6% | | West Midlands | +1.5% | +10.7% | -7.9% | | Wales | +2.0% | +1.9% | -16.2% | | North West | +3.2% | +0.2% | -16.4% | | London | -1.0% | +6.0% | -6.1% | | Yorkshire and the Humber | +1.3% | +3.6% | -7.3% | | Scotland | +2.5% | +5.5% | +1.4% | | UK | +0.8% | +8.6% | -10.5% |

Source: Zoopla 2026

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 per cent in the North West and 2.4 per cent 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 per cent 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."

ENDS

About Zoopla

Zoopla is one of the UK's leading property websites and trusted consumer brand, empowering movers to make better property decisions with over nine million monthly users. Over six million homeowners subscribe to track their property values, providing a pipeline of motivated movers for Zoopla's estate agent and housebuilder customers. The business is investing in AI-driven experiences that engage movers earlier and unlock strong ROI for customers.