1. The 5% deposit scheme changed buyer behaviour

The government expanded the scheme that lets some buyers purchase with just a 5% deposit.

That’s made cheaper homes much more attractive, because:

• buyers can get in with less savings

• more people can suddenly afford the same homes

This has pushed up demand – and prices – at the lower end of the market.

2. People rushed in early

Some buyers didn’t even wait for the scheme to officially start.

They bought before October 1 because they expected:

• more buyers

• more competition

• higher prices

That early rush helped push prices up sooner.

3. Interest rates are limiting borrowing power

With interest rates still high:

• banks won’t lend as much

• buyers are forced to shop cheaper

So instead of buying their “dream home”, many buyers are:

• lowering expectations

• targeting smaller or cheaper properties

That concentrates demand in the lower price ranges.

4. Investors are in the mix

Investors are very active right now:

• they made up 41% of all mortgage demand

• investor lending is growing at its fastest pace since 2015

That means first-home buyers aren’t just competing with each other –
they’re also competing with investors who often:

• move faster

• have more experience

• can afford to stretch further