Buy First Home UK

22/05/2026

Rightmove: asking prices are 1.2% higher in May 2026 than the previous month
According to recent data from Rightmove: “The housing market remains confident overall despite global uncertainty and resulting cost-of-living pressures, with the number of sales agreed just 4% below last year when mortgage rates were significantly lower.”
Although first-time buyers now have the best property choice since 2015, they still encounter pressure from reduced mortgage choice and affordability challenges.
According to Moneyfacts’ latest report, although the mortgage market calmed down since March when it was affected by the Iran war, and fixed deal rates have even fallen a bit, the choice of higher loan-to-value deals , which are used by first-time buyers the most, has fallen by 14% from the beginning of March.
Serious buyers seeking mortgage approval need to make a decision quickly, as the average shelf life of deals is just 16 days.
https://www.introducertoday.co.uk/breaking-news/2026/05/first-time-buyers-face-continued-pressure-after-deal-contraction/
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers may feel partially relieved by the period of calm after absolute mortgage mayhem, but first-time buyers bear the brunt.
“First-time buyers will be frustrated to see the choice of higher loan-to-value (LTV) options drop by 14% since the start of March (90%, 95% and 100% LTV) and those with little equity of just 5% hoping to grab a two- or five-year fixed deal will find average fixed rates remain above 6%.

Limited low-deposit mortgage options continue to challenge aspiring homeowners despite calmer lending conditions. – First-time buyers face continued pressure after deal contraction

17/05/2026

Zoopla: Cheapest areas for first-time buyers



A recent Zoopla report revealed the cheapest cities and cheaper areas for first-time buyers.

For a typical first home (two bedrooms or smaller), the first 10 cities are:

Aberdeen, Aberdeenshire £94,778

Bradford, West Yorkshire £104,222

Hull, East Riding Of Yorkshire £104,934

Doncaster, South Yorkshire £107,088

Preston, Lancashire £112,830

Sunderland, Tyne And Wear £114,671

Dundee £117,624

Carlisle, Cumbria £120,999

Stoke-On-Trent, Staffordshire £126,263

Swansea, Wales £133,978



Are any of them close to where you live, so commuting could be an option?

Or would having your own place be worth relocating for?

https://www.rightmove.co.uk/mortgages/guides/first-time-buyers/10-cheapest-cities-and-areas-to-buy-houses-in-the-uk/?

Housing price data reveals the top 10 cheapest cities and areas to buy homes for first-time buyers. Read our guide on the most affordable locations.

10/05/2026

Property market update
Zoopla HPI:
“Conflict in the Middle East over the last 2 months has pushed mortgage rates higher and led to a decline in consumer confidence. While some homebuyers and sellers have exhibited greater caution, the average home is taking just 1 day longer to sell than a year ago.
This tells us that households who need to move have found buyers at the same pace as last year. This is important as it shows that the housing market has absorbed two shocks and kept functioning without a major decline in levels of activity.
The 'time to sell' is the same as last year or lower across more than half of the regions and countries of the UK. It is taking longer to sell in London and southern England. Buyers in these areas are more affected by higher mortgage rates, particularly first-time buyers. In London, homes are taking 6 days longer to find a buyer than a year ago.”

https://www.zoopla.co.uk/discover/property-news/house-price-index/

What's next in the 2026 housing market?

Mortgage rates are starting to drift lower after rising sharply in March. This is positive news for market activity and reflected in the rebound in buyer enquiries after Easter.
We still expect sales to hold up through the rest of the year with continued modest price growth nationally of 1% to 1.5%. The North-South divide in both sales speed and price growth is likely to persist.
For buyers, mortgage rates are lower than they were six weeks ago and lenders are competing for business again. Prices are not falling, and the best-value homes are moving quickly.

01/05/2026

The interest rate was held at 3.75%, but the BOE (Bank of England) warned it can raise it later this year

BOE indicated that it’s difficult to make predictions due to the Iran war affecting energy prices. It considered three scenarios, and in the worst case, if oil prices stay above $120 per barrel longer, inflation can reach 6.2%, and BOE will need six rate increases up 5.5%
https://www.bbc.co.uk/news/articles/cg7p89mp2rjo
Before the outbreak of the Iran War, it was widely expected there would be rate cuts this year.

The Bank of England has held the interest rate at 3.75%, but signalled rates could rise later this year owing to inflationary pressures from the Iran war.

Simon Gammon of Knight Frank Finance says: “There is considerable jostling for position among lenders. Those offering the most competitive rates are quickly inundated with demand and often need to reprice higher to manage volumes.

“This dynamic increases the risk of mortgage rates moving sharply on any negative news.
“Margins are extremely thin, meaning lenders have limited capacity to absorb volatility, and the combination of strong borrower demand and rapid repricing can create a snowball effect that amplifies rate movements.”

24/04/2026

52% prospective buyers are ready to buy in 2026
- according to new research by Mortgage Advice Bureau
The research shows :
- 47% say that stability and security of the ownership give the biggest motivation
- 41% like the freedom to decorate as they like and own pets
- 37% want to build long-term wealth
https://www.estateagenttoday.co.uk/breaking-news/2026/04/four-in-ten-aspiring-homeowners-still-holding-back/?

But despite their intensions, many are hesitant, citing affordability, market conditions and general economic uncertainty. 41% of respondents are still waiting to start buying, and surprisingly, 31% still lack an understanding of how to buy a house.
In which group are you?
Are you ready to buy, but you are uncertain where to start?
Do you think you don’t have enough of a deposit?
Have you already started looking for your dream house but are scared to make the choice?
DM us, and we will be happy to help.

More than half (52%) of prospective buyers say they’re ready to buy in 2026 - yet four in ten (41%) are still waiting for a “sign” before taking the plunge, new research from Mortgage Advice Bureau (MAB) has revealed. – Four in ten aspiring homeowners STILL holding back

18/04/2026

Better news for first-time buyers

Eventually, mortgage rates started to ease as money markets reacted to hopes of peace in the Middle East.
The last six weeks since the start of the Iranian war have been hard for people looking for a mortgage as lenders increased their mortgage rates and many products were withdrawn from the market. But there are signs that several lenders started cutting rates on new deals.
https://www.bbc.co.uk/news/articles/cwyx2q86lgpo

Jo Jingree, from advice firm Mortgage Confidence, noted:"For anyone who has been waiting for reductions, now might be the time to secure a rate. Although there is a chance rate reductions will continue, the situation is far from stable and waiting further could be a risk."
However there are about 1,000 fewer mortgage deals on the market than before the war, there are still thousands to choose from, and lenders are offering bigger loans than previously to new buyers.

Major lenders make rate reductions as markets take some heart from a possible truce in the Iran war.

13/04/2026

Share of freehold v Commonhold. What is the difference?

This could be a very important question for new buyers, as apartments represent a considerable part of first-time buyers' purchases because they are usually more affordable.

A share of freehold and commonhold are two different models of property ownership for flats in the UK, though both give property owners greater control over their leasehold property. The differences are significant and have direct outcomes for homeowners considering their decisions.
A share of freehold is when several leaseholders (normally flat owners) join together to purchase the freehold (land, airspace and fabric) of their building. Usually, this involves forming a limited company or group to own the freehold estate collectively. Each flat remains a leasehold property at the same time
Commonhold is a separate form of property ownership, it is relatively and it was introduced as an alternative to leasehold ownership, where every unit owner (100% of all the flats) owns their property outright with no lease, and all unit holders jointly manage the building through a Commonhold Association, which is a company limited by guarantee.
There are benefits and limitations for both legal forms, you can read more about it here:

https://www.estateagenttoday.co.uk/features/2026/04/share-of-freehold-vs-commonhold-whats-the-real-difference/?

Key differences between share of freehold and commonhold explained for property owners. – Share of freehold vs commonhold: what’s the real difference?

10/04/2026

Why homebuyers shouldn’t be waiting

Although Iran war is already influencing the UK property market, house prices are higher in March than a year ago. There are reports that buyer enquiries are lower this year, but in 2025, there was an unusually high activity due to changes in Stamp Duty.
Conditions are never perfect; people have obstacles all the time.
Michelle Niziol, founder of agency brand IMS Property Group, reflected on the current situation:
“Many buyers feel they need to wait for the perfect moment, lower rates, lower prices, more certainty, but in reality, that often just delays a decision.
“The perfect moment rarely arrives in the way people think it will. What matters more is whether the numbers work for you today and stay sustainable over time. Waiting can sometimes make things harder rather than easier, whether that’s through rising rents, higher deposits or more competition when things do improve.”
The current environment has provided an opportunity, though, even with the new ceasefire.
Niziol said: “Higher rates have made affordability tighter, but they’ve also taken some of the heat out of the market. With more choice and less competition, this is a better environment for buyers who are well-positioned, those with strong deposits, equity behind them, or finances already lined up.
“The property market continues to reward people who plan properly and think long term. What’s changed is that decisions need to be grounded in today’s conditions, not a version of the market that may not come back in the same way. If the numbers work now and they work sustainably, there’s no good reason to wait.

https://www.estateagenttoday.co.uk/breaking-news/2026/04/estate-agency-boss-why-homebuyers-shouldnt-be-waiting/?

The best mortgage market of the year lasted just six weeks before the Iran conflict broke out and pricing rose, a buying agent claims, but there are still reasons to proceed. – Estate agency boss: Why homebuyers shouldn’t be waiting

02/04/2026

A prolonged war will affect the property market

Although Nationwide March HPI (House Price Index) indicated higher annual growth of 2.2%, which is more than 1% it was in February, the lender warns of the impact of the extended conflict in the Middle East. It is widely expected that there will be increased energy costs and increased mortgage rates.
https://www.bbc.co.uk/news/articles/ckgwe7k49d7o

Instead of several interest cuts during the year, now the market expects that the BOE (Bank of England) will increase the base rate. The mortgages are going up already. Average mortgage rates have increased by 0.4 percentage points in the last month, with many sub-4% deals being withdrawn.
Ashley Webb, UK economist at Capital Economics, said he doubted house prices would achieve the previous forecast of 3.5% growth in 2026. "Depending on how far mortgage rates rise and by how much the economy weakens, prices may rise by a more modest 1.0% or so, or even stagnate in an adverse scenario."

Demand on the UK housing market is showing signs of slowing, according to property portal Zoopla. There are fewer buyers than the previous year, but a smaller group of motivated buyers is keeping the number of sales agreed flat.
A slowing market can open new opportunities for buyers who are ready to buy.
According to Zoopla, UK house price inflation is holding steady at +1.3% year on year, with little immediate impact from the recent weakening in buyer demand.
Richard Donnell, executive director at Zoopla, says: “For buyers, there is less competition and more choice, but affordability is becoming more stretched”.

28/03/2026

Lloyds Bank: 46% of home purchases with a mortgage are first-time buyers

Even though the ongoing war in the Middle East will affect the UK economy and the property market, it can bring opportunities to first-time buyers who are ready to make their first step on the property ladder.
Recently, there were favourable conditions for first-time buyers: mortgage rates were lower than their peak in late 2022 and 2023, and more new properties were coming to the property market, improving the choice.
A recent report from Lloyds Bank found that 46% of property buyers with a mortgage are first-time buyers, and in some areas their share is even higher, up to 70%
https://www.which.co.uk/news/article/where-are-the-first-time-buyer-hotspots-in-great-britain-aKcjP8E2B79R?utm

As first-time buyers usually look for more affordable homes, their share at the lower end of the market could be even higher, as people buying their next house most likely are looking at the higher range.
Which magazine lists the key costs of buying a house: deposit, Stamp Duty, legal costs, and the cost of moving.
Deposit: although a typical deposit is 10%, there are options with lower deposits, like 1% from Yorkshire Building Society and 2% from Santander, as well as zero deposit options from Skipton Building Society. These lower deposit mortgages often charge higher rates, and it would be advisable to discuss the available options with an independent mortgage adviser.
Stamp Duty: all top 10 areas in the table are below £300,000 SD threshold for first-time buyers, although in London and Southern areas, the tax should be factored into your budget.

22/03/2026

BOE kept the base rate at 3.75%

Before the US and Israel started attacking Iran, analysts expected inflation and interest rates to fall this year, but it looks like it will not happen until after the end of the conflict. If the war is not ended soon, the oil and gas supply will be affected for a longer period, and there is a serious risk of high inflation staying longer due to high energy prices.
https://www.bbc.co.uk/news/articles/c8d5dee3ep8o

The market now expects interest rate increases during the year, traders are predicting there could be two hikes before the end of 2026, taking rates to 4.25%.
This change in expectations is already affecting mortgage rates. Over the past weeks, fixed rates on new deals have risen sharply and hundreds of mortgage products have been withdrawn by lenders.

Jason Tebb, President of OnTheMarket says: “With lenders pulling mortgage products and repricing upwards in recent days to reflect higher Swap rates and maintain service levels, there is a degree of uncertainty and volatility.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: “Market expectations for two or three further quarter-point rate cuts this year resulted in a fall in Swap rates, which underpin the pricing of fixed-rate mortgages.
“Now, with market expectations that those reductions won’t happen, and a possibility that rates may even rise at some point, Swaps are extremely volatile and have edged upwards again.”

Policymakers vote unanimously to hold rates at 3.75% after the Iran war prompts a reversal in the debate over borrowing costs.