The Unexpected Steady Hand in a Shifting Market
When mortgage rates started climbing sharply in March, many property professionals held their breath. After months of relative calm, borrowing costs rose with striking speed, and the question on everyone's mind was whether buyers would simply walk away from the market.
They didn't. At least, not in the numbers some had feared. Sales agreed across Great Britain fell by just 2% year-on-year in March, suggesting the property market has more backbone than headlines about "rate shocks" might suggest. But here's the real story behind these figures: it wasn't experienced homeowners or seasoned property investors who kept the market ticking over. It was first-time buyers.
Why First-Time Buyers Are Outperforming Everyone Else
According to the latest Connells Group data, first-time buyers accounted for 34% of all sales in March, the highest proportion recorded for any March since 2006. That's nearly one in three property transactions. What makes this particularly striking is how this group has weathered the recent rate turbulence far better than other buyer categories.
There are a few reasons for this. First-time buyers experienced the smallest increase in mortgage rates among all buyer types in March. That matters because it reflects how lenders have positioned their products. While landlords and those trading up to larger properties faced steeper rate hikes, particularly on lower loan-to-value mortgages, first-time buyers with smaller mortgages haven't absorbed quite the same shock to their monthly payments.
But there's something else at play here too. Many first-time buyers are simply more determined. They've often been saving for years, they're motivated by the desire to stop paying rent and build equity, and they're less inclined to delay their plans because rates have ticked up by half a percentage point. Whilst an investor might pause a purchase decision, someone who's scraped together a deposit and cleared their mortgage affordability checks tends to press ahead.
The Broader Picture: Deals Locked in Earlier
There's another crucial factor supporting market activity right now. Around 44% of homes completing in March had mortgage offers agreed back in January or February, when rates were lower. Nearly half of all buyers had actually secured deals as far back as 2025, when borrowing costs were even friendlier. This means that even though headlines have screamed about rate rises, a substantial portion of the market is still operating under older, cheaper mortgage deals.
This is a temporary cushion though. As those earlier deals expire and buyers either remortgage or complete their purchases with fresh offers at current rates, the true test of affordability will emerge. The average mortgage rate on a new property purchase stands at 4.57%, its highest point since April last year. With the Bank of England base rate sitting at 3.75%, there's limited room for meaningful rate falls in the near term.
What This Means for Your Property Plans
If you're thinking about buying, the performance of first-time buyers hints at something important: the market isn't collapsing, and urgency doesn't need to tip into panic. Take time to shop around properly for mortgages. A competitive mortgage broker can still unearth decent deals even in a higher-rate environment, and the difference between a 4.5% and a 4.7% rate matters significantly over a 25-year term.
If you're a first-time buyer specifically, the data suggests you're not alone in your push to get onto the property ladder. That's reassuring. Competition is real, but so is lender appetite to support this market segment. Make sure your mortgage application is watertight, your finances are in order, and you've had a realistic conversation with a mortgage professional about what you can actually afford at today's rates.
For sellers, the picture is a touch more cautious. New properties coming to market fell by 7% year-on-year in March, the sharpest drop in almost a year. That suggests some homeowners are holding off, worried about where rates are heading. If you're considering selling, reduced supply in some regions could work in your favour, particularly if you're in a desirable area. Pricing has remained firm, with just 16.8% of homes selling below asking price in England and Wales.
The property market isn't immune to rate rises, but it's proving more flexible than many feared. First-time buyers are showing us why patience, determination and solid financial preparation still work, even when the economic backdrop feels uncertain.