There’s a keystone buyer group that quietly underpins the entire housing market: first-time buyers.
They may not grab headlines, but without them, the entire system stalls. And that’s exactly what we’re seeing now.
Our latest figures at Alto – drawn from real-time activity across 6,000+ UK estate agents – reveal that first-time buyer offers have plummeted 55% in Q1 2025 compared to the same period last year. That’s not a blip. It’s a direct consequence of April’s stamp duty changes.
On April 1st, the Government reduced the threshold for FTB stamp duty relief from £425,000 to £300,000 – effectively increasing the cost of buying for thousands of already stretched would-be homeowners.
The result? Within weeks, new registrations slowed. Viewings dropped. Buyers started to hesitate. And now, agents are watching deals evaporate.
In a recent nationwide survey we ran, 41% of agents said they’ve seen a fall in first-time buyer interest. Nearly half say these buyers are more hesitant than ever – asking more questions, viewing more homes, and frequently walking away. One in five agents say their first-time clients are now viewing six or more properties before making an offer – if they make one at all.
We’ve also seen a sharp shift in demand. Two-bed homes priced between £201k and £300k remain the most sought after, but are increasingly out of reach. In some regions, confidence is dropping – buyers are second-guessing whether they can afford to buy at all.
This shouldn’t come as a surprise. The average first-time buyer is already contending with high interest rates, volatile lending criteria, and a cost-of-living crunch that eats into savings.
And when the base of the ladder breaks, the rest follows.
Agents are now in a tough position. Pipelines are drying up. Chains are collapsing. Revenue, often tied to completions, is under pressure. Some are adapting – shifting their focus to second-steppers or landlords – but for many, this isn’t a simple pivot. It’s a fundamental change in the composition of the market, and one that brings new challenges.
Alto are hosting a free webinar with industry experts
That’s why we’re inviting agents to join our upcoming webinar: Stamp Duty & the FTB Slowdown: What Estate Agents Need to Know.
We’ll unpack the numbers, hear directly from agents, and explore practical steps to take in the months ahead.
Back to the survey, Alto data shows over half (56%) of agents want the Government to step in with tangible support: more generous stamp duty relief, help-to-buy-style mortgage guarantees, financial education for younger buyers, and stricter investor taxes to level the playing field.
As an industry, we need to get behind that call. Not just because it’s fair – but because it’s necessary. Agents are resilient, resourceful, and used to adapting. But they shouldn’t be left to paper over the cracks alone.
At Alto, we see our role as an early warning system for agents – surfacing trends and issues early, and giving them the tools to respond.
Our dashboards make it easy to spot market shifts like the FTB drop-off in real time. That kind of reporting and visibility is critical when deciding where to focus, who to target, and how to message.
Because this isn’t just about a drop in viewings or a quarterly revenue dip.
It’s about what kind of market we want to build – and who we’re building it for.
