Written by Toni Smith, Director, Sesame
The future is looking bright for first-time buyers. At least according to recent reports from some of Britain’s biggest lenders. Latest house price data from Nationwide showed first-time buyer activity was up 20 per cent last year, while Barclays reported that Gen Z are feeling more confident about the housing market than a year ago.
This is positive news because first-time buyers remain central to the long-term health of the housing market. They sustain new housing supply, help to unlock the housing chain from the bottom up and are driven by necessity rather than speculation, which brings a degree of resilience to the market. As other parts of the market face pressure – from constrained buy-to-let activity to downsizers delaying moves – first-time buyers are becoming a stabilising force. Supporting this group is therefore not just good for individual clients, but for the wider housing market.
Affordability is improving
For first-time buyers, affordability remains the biggest barrier, but the environment is improving. Easing interest rates, reduced stress testing, and greater flexibility around loan-to-income multiples are improving access to the housing market.
The opportunity and the demand are there – but consumer confidence is still fragile. Many first-time buyers are acutely aware of recent economic uncertainty and remain hesitant, despite improving conditions. There is also significant pent-up demand: people who are financially ready, or nearly ready, but waiting for greater certainty before committing. Advisers are often dealing with clients who need reassurance as much as rate comparisons.
Role of the adviser
Advisers play a critical role in this environment. First-time buyers are navigating a complex and emotionally charged decision for the first time, often with limited financial experience. Advisers are uniquely positioned to educate, reassure and guide them.
Recent lender innovation has unlocked opportunities that didn’t exist a year or two ago. Targeted first-time buyer products, longer-term fixed rates, enhanced affordability assessments and support for those with smaller deposits are helping advisers structure cases that would previously have been declined. These innovations are aligning lending decisions with real-world affordability and borrower behaviour and helping people take their first step onto the housing ladder.
The protection question
Most people don’t want to think about the worst happening, let alone first-time buyers, who are generally younger and working to tighter budgets. However, the risks of illness, loss of income or unexpected life changes are particularly acute when budgets are stretched, which is why advisers need to take a holistic approach to financial planning. First-time buyers need protection just as much as older buyers, and they need help to find the right products. The goal for advisers is to integrate these conversations early, in a clear and empathetic way. By demonstrating the value of protection, advisers can help lay strong financial foundations for their future.
Looking ahead
Looking ahead to 2026, there is reason for cautious optimism. With improving affordability, continued lender innovation and the right adviser support, hesitation can be converted into confident action. First-time buyers need clarity, realism and trusted guidance. Advisers, working closely with lenders, are central to making that happen.
