First-Time Buyers Face Pre-Budget Jitters – Latest Market Roundup

As the Autumn Budget looms on 2026, the UK property sector for first-time buyers (FTBs) is in a holding pattern, marked by cautious optimism, modest price growth, and urgent calls for policy tweaks. Drawing from reports over the past 30 days, here's a concise summary of the key developments shaping the landscape for aspiring homeowners.

Market Activity: Resilience Amid Buyer Caution

The housing market showed mixed signals in October, with FTBs driving underlying demand despite a seasonal slowdown. Rightmove's November update revealed sales agreements up 4% year-to-date compared to 2024, underscoring solid interest, though the usual autumn price bounce failed to materialise due to high stock levels—a decade-high choice for buyers. Similarly, Zoopla's October House Price Index noted annual growth easing to 1.3%, with the average UK home at £270,000, as pre-Budget speculation on potential property tax hikes (like replacing stamp duty with an annual levy) prompted many early-stage buyers to pause.

Halifax data highlighted a brighter spot: house prices rose 0.6% month-on-month in October—the fastest since January—pushing the average to £299,862 and annual growth to 1.9%, fueled by record-high mortgage approvals this year. Nationwide, however, reported a softer 0.3% monthly increase to £272,226, with annual growth ticking up to 2.4%, attributing the dip to buyers "sitting on the sidelines" ahead of fiscal announcements. FTBs, comprising a record 38.4% of sales in 2023 (latest full data), continue to lead entry-level demand, particularly in the North East where prices grew 7.9% annually.

Financing Trends: Low Deposits on the Rise

Affordability pressures persist, but lenders are adapting. Barclays reported an 8.6% jump in October for FTB completions with deposits under £20,000, now at 22.1% of deals, thanks to expanded 95% loan-to-value (LTV) options amid stabilising rates around 4%. Zoopla noted FTBs targeting pricier homes—up 2.4% year-on-year to £229,000 on average—as improved mortgage access offsets costs, though London seekers eyed £420,600 properties (2.4% down annually).

The government's extended mortgage guarantee scheme, supporting 5% deposits until June 2026, has bolstered this trend, with experts crediting it for helping FTBs navigate high prices. Rents, up just 0.9% to £1,343 monthly in September, make buying more appealing long-term for those planning to stay five-plus years.

Policy Pressures: Budget Buzz and Reform Calls

Uncertainty dominates headlines. eXp UK's research found 47% of FTBs delaying purchases until post-Budget, citing tax and affordability fears—41% blame high deposits. Rightmove echoed this, with 17% of potential movers pausing due to property tax rumours.

Industry voices are vocal: Taylor Wimpey's CEO urged reviving a Help to Buy equity loan (75-80% LTV) in the Budget to "move FTBs into the market," warning of a "long shadow" from fiscal caution after a sales drop in autumn. Zoopla's Richard Donnell highlighted that 40% of FTBs (80% in London) now face stamp duty post-April's threshold cut to £300,000, calling it a "sin tax" to scrap. Rightmove noted 40% of FTBs currently avoid the tax, but changes could add thousands.