Written by Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents)
From the outside, the housing market debate often focuses only on one blunt metric: supply. Build more homes, the argument goes, and first-time buyers will find it easier to get on the ladder. But on the ground, speaking daily to buyers and sellers, it’s clear that this headline diagnosis misses a critical point.
The issue for first-time buyers is not simply how many homes are being built, but what is being built, where, and at what price point.
Not a shortage of homes, but a shortage of the right homes
In many local markets, stock levels have improved compared to the post-pandemic lows. Viewings are no longer booked solid for weeks in advance, and buyers have more time to consider their options. Yet first-time buyers continue to struggle, not because there’s nothing available, but because very little of what’s available genuinely meets their needs.
Entry-level homes, smaller houses, maisonettes, and well-located flats remain in chronically short supply. These are the properties first-time buyers ask for repeatedly: homes close to transport links, employment centres, and amenities, with manageable running costs and realistic price tags.
Instead, much of the stock coming to market falls into one of two categories: larger family homes being sold at higher price points, or new-build properties priced at a premium that stretches affordability, even with incentives.
The blocked chain effect
One of the most overlooked constraints on first-time buyers is the lack of movement further up the chain. Downsizers, who would typically release smaller homes back into the market, are staying put for longer. Some are reluctant to give up low mortgage rates secured years ago; others are deterred by Stamp Duty costs or a lack of suitable alternatives.
The result is a blocked natural cycle. When downsizers don’t move, family homes don’t free up. When family homes don’t sell, sellers don’t trade down. And when that churn slows, first-time buyers feel the squeeze at the bottom.
From an estate agent’s perspective, this is not a demand problem; first-time buyers are there, motivated, and mortgage-ready. It’s a flow problem.
However, there are other significant issues at play beyond supply problems. Upfront cost barriers are increasingly constraining effective supply and access, particularly the size of required deposits. Rising prices have pushed deposit requirements well beyond the reach of many potential buyers, while additional upfront costs, most notably Stamp Duty, further raise the initial financial hurdle. These costs can delay or prevent transactions altogether, reducing mobility within the housing market and exacerbating supply pressures even where underlying demand exists.
New-build supply: quantity without accessibility
New-build homes are often presented as the solution for first-time buyers, and they can play an important role. But the reality on the ground is more nuanced.
In many areas, new-build developments are priced at a level that assumes dual incomes, long mortgage terms, and significant upfront contributions. Even where developer incentives are offered, buyers are often stretching to meet affordability thresholds, leaving little financial resilience.
There is also a mismatch in location. Developments are frequently built where land is available rather than where first-time buyers need to live. Transport links, local services, and employment access don’t always align with buyer expectations, particularly for those commuting or working hybrid roles.
As agents, we increasingly see first-time buyers view new-builds with interest, but ultimately return to the second-hand market in search of better value and location, only to find limited supply there too.
The pressure points are local, not national
One of the challenges in addressing first-time buyer supply is that the problem varies dramatically by region. National figures can mask local realities.
In commuter belts and urban fringes, demand for entry-level homes far outstrips supply. In coastal or rural areas, pricing may be lower, but employment opportunities and transport links reduce viability for younger buyers. In city centres, leasehold complexity and building safety concerns have narrowed the pool of mortgageable flats.
From the front line, it’s clear that a one-size-fits-all approach to housing delivery does not reflect how first-time buyers actually navigate the market.
Why this matters for market stability
First-time buyers are not just participants in the housing market; they are its foundation. They create momentum, enable chains to form, and provide confidence to sellers higher up. When the supply for first-time buyers is constrained, the entire market feels it.
What we’re seeing now is not a collapse in demand, but a slower, more fragile market where transactions take longer, and fall-through rates increase. Buyers are cautious, sellers are hesitant, and the lack of suitable stock adds friction at every stage.
This has broader economic implications. Fewer transactions mean reduced mobility, delayed life decisions, and weaker confidence, outcomes that affect far more than just housing.
What agents are calling for
From an estate agent’s perspective, supporting first-time buyers requires a more targeted understanding of supply:
- Incentivising the delivery of genuinely affordable, entry-level homes in appropriate locations
- Encouraging downsizing through tax reform and better housing options
- Aligning planning policy with local demand, not just delivery targets
- Recognising that affordability is as much about suitability and security as headline price
Many first-time buyers are ready to play their role in the market. They are saving, planning, and engaging, but too often they are navigating a landscape that was not designed with them in mind. However, for some, deposit requirements and upfront costs present real barriers to homeownership, so further support should be provided to help make homeownership a reality for those wishing to step onto the property ladder.
If policymakers want a housing market that functions smoothly and sustainably, the focus must shift from how many homes we build to whether we are building the homes first-time buyers actually need.
Mary-Lou Press is the President of NAEA Propertymark
