Buying Your First Home, London (2026)

18/08/2026

Rightmove has downgraded its house price forecast for 2026 from 2% growth to fall between 0 and 2%

According to the latest HPI (House Price Index), average asking prices fell by 2% in August. Although prices drop seasonally in August, this is a bigger drop than the 1.3% average
https://www.landlordtoday.co.uk/breaking-news/2026/08/rightmove-rings-alarm-bells-as-it-downgrades-price-forecast/

Annually, prices decreased by 1%, and this is the biggest fall since December 2023, when mortgages were increasing quickly after the disastrous mini-budget.

Uncertainty in the Middle East has led to higher mortgage rates, with the average 2-year rate up to 5.09% from 4.92% last month.
A Rightmove statement says: “The changing picture for mortgage rates, alongside geopolitical uncertainty and the new Chancellor’s first Budget in October, highlights how uncertain the market is right now.“
“Consequently, Rightmove downgrades its price forecast for 2026 from +2% to a change of between 0 and -2% in average new seller asking prices over the year as a whole.”

It had forecast a rise in 2026 - but not any more – Rightmove rings alarm bells as it downgrades price forecast

09/08/2026

Plan Broadband in advance
For first-time buyers who are close to moving into their new home there are a lot of things to prepare for. There is one thing that we all need in our modern life: the Internet.
To avoid additional costs and delays, movers are advised to look at arranging the Broadband in advance.
• Chack what providers are available in your new house, check existing connections. In some new-build houses the broadband for the entire building or street could provided by a single provider. Use the Uswitch Postcode Checker comparison tool to see what fibre or standard networks reach your new property.
• Review your current provider. Are you still in a fixed-term contract? When it will end? Can you switch to the new property? It could be possible if they operate in your area, but there might be additional set up costs and it will need two or more weeks to book an engineer visit for the new installation.
• If you decide to use another provider, check available deals in your area. Broadband speeds, pricing, and introductory offers can vary significantly by location, so comparing broadband deals in advance can help you secure better value.
• Contact your current provider and inform them about your move date. Although some companies require only two weeks, many require notice 30 days in advance. If you plan to stay with the same provider, you still need to inform them earlier, especially if the new house require the new connection.
• Even the best planning can leave you without the Internet for several days. Mobile data and phone tethering can provide a temporary internet connection, but watch your usage as going above your monthly mobile contract data could be expensive.

There are five tips for home movers – Movers urged to plan ahead for broadband

26/07/2026

Barclays: house deposits are more affordable

The latest mortgage data from Barclays shows that although house prices have increased slightly since last June, deposit values have fallen considerably, now -24.8% since last year.
Barclays also reports that more people are buying on their own, not with a partner.
In 1980, 83% of fist houses were bought with partners, and only 15% were bought by a single person.
But this June, almost 37% of first homes were bought by a single person.

The data comes from Barclays – Good news as deposits more affordable - Barclays

17/07/2026

How can your parents or your family help you to buy your first house?

According to research by Savills, a real estate agency, half of first-time buyers received financial support from their family in 2025.
How can it be done?
1. Help with the deposit.
Although gifts are the most common way to help fist-time buyers, but there are other ways to do it.
Another way to boost the deposit is a loan.
It is important to arrange the correct documentation as the lender will ask to confirm if buyers received a gift or it was a loan.
2. Guarantor mortgages
Parents or a family member can use their savings as additional security for the mortgage.
For example, Barclays offers the Family Springboard Mortgage. It allows buyers to purchase without a deposit, but a family member will deposit 10% of the property's value into a special savings account. This will be held for five years and then released back, with interest added, provided all mortgage payments are made.
If something goes wrong and the lender had to repossess and sell the property and received less than what was still owed on the mortgage, they could recoup the difference from your savings. Unfortunately, the rate for this type of savings account is usually lower than the normal savings rates on the market.
3. Joint Borrower Sole Proprietor (JBSP) mortgages
In this case, while the parent and child are both named on the mortgage, only the child's name will be on the property's deeds, meaning the parent will not pay stamp duty. By combining income with parents, it’s possible to receive a larger mortgage and buy a bigger house.
This type of mortgage is aimed at helping borrowers purchase a property, with the expectation that they will shift to a standard residential mortgage once sufficient equity is built up over time.

First-time buyers got £11bn in financial support last year, but should you use a gift, loan or mortgage to help?

05/07/2026

New reforms are coming to the property market

The government has recently announced reforms to the homebuying process aimed at speeding it up and ending “gazumping”.
The changes will include
• upfront information about the property: conditions, any leasehold costs, information about the property chain so buyers can make better informed decisions
• sellers will pay for surveys and this information will be included in the house pack.
• to introduce a mechanism to make the process legally binding at an earlier stage, limiting the ability of either party to walk away without a legitimate reason. The possibility of a sale collapsing after months of preparation makes it extremely stressful for both buyers and sellers.
• replacing paper-based systems with modern digital options. The government wants to introduce digital property logbooks and sales packs, digital identity checks, electronic signatures and AI-assisted conveyancing.
The government says that these changes will halve the number of sales that fall through and they will reduce the average buying time by four weeks, saving buyers on average about £650.
https://www.bbc.co.uk/news/articles/c6216g52p8wo

The timeline for the changes:
• Later this year: a Code of Practice to set out minimum standards for property agents and guidance to improve the quality of information in property listings;
• From 2027: consultation on estate agent qualifications and expanded digital tools;
• By the mid-2029 (the end of this parliament): comprehensive legislation to require sales packs, binding contracts, and digital systems that support the efficient sharing of trusted digital property information.

Although many in the industry support the proposed reforms, there is some criticism. Although not all details are available at the moment, the proposal looks similar to HIP (House Information Pack), which was introduced by Brown’s administration in 2007 and which was scrapped later because it didn’t serve its purpose. There are also voices that buyers will not trust the information paid for by sellers and they will order their own, effectively doubling the costs of the property transaction.
Sir James Cleverly, the shadow housing secretary, said the housing proposals would deter sellers from listing their homes and reduce the supply of properties for sale.
Rightmove's chief executive Johan Svanstrom said their data shows more than one in five sales will initially fall through.
"This is an encouraging step towards a faster and more efficient property market, addressing some of the biggest frustrations that home-movers and industry participants face," he said.
"By making more information available upfront, there is a clear opportunity to reduce fall-throughs and increase transparency."

Sales agreements will be legally binding sooner and making sellers provide more home information up front are part of the planned changes.

18/06/2026

Interest rate held at 3.75% today
Yesterday’s news that inflation stayed at 2.8%, which was lower than expected 3%, gave some positive momentum. It’s still above 2% target for the Bank of England, but the Monetary Policy Committee decided to keep the interest rate for another month.
Despite a signed agreement between the USA and Iran, there is still big uncertainty about how and when the oil flow will be restored, and how energy prices will affect inflation.
A stable base rate can help banks to start gradually decreasing mortgage rates, and the process is already starting; several lenders reduced their rates this week.
https://www.estateagenttoday.co.uk/breaking-news/2026/06/agents-react-to-interest-rate-decision/

Nicky Stevenson, managing director of Fine & Country, commented: “The recent reductions in mortgage rates from lenders are a positive step and, combined with a steadier economic environment, could help unlock demand over the coming months.
“A recovery in confidence may take time to filter through, but the fundamentals of the housing market remain resilient.”

The decision was announced at midday – Agents react to interest rate decision

16/06/2026

Rightmove: biggest asking price drop in June in 14 years
Rightmove data show 0.6% monthly fall and 0.5% fall from the previous year.
The number of homes for sale are at historically high levels for this time of year, up 6% on 2024 and 12% on 2023, demand is weak and down 10% in May 2026 compared to a year earlier.
Rightmove noted: “May’s unusual heatwave kick-started summer earlier than usual this year, while the World Cup may prove to be a distraction for home-movers. Meanwhile, ongoing economic challenges and global uncertainty remain.”
There’s a clear divide between north and south: “Prices have fallen across all southern England regions and Wales, while the more affordable northern areas such as the North East and Scotland are holding up better compared to this time last year.”
Collen Babcock, property expert at Rightmove, said: “While the summer market has come a bit early this year, overall activity is still within a typical historic range. What has changed is some buyer behaviour; with more homes to choose from and higher borrowing costs, buyers are deliberating more and taking longer over their decisions. Sales activity remains stable, but it’s a very price-sensitive market with buyers looking out for the right property at the right price.
“It’s encouraging to see another slight reduction in average mortgage rates this month, which is a small step in the right direction for affordability and market sentiment. While rates remain elevated, even modest changes can make a difference to buyers’ budgets and confidence.”

Polly Ogden Duffy, managing director at John D Wood & Co London, said the figures were good for new buyers: “For first-time buyers, this represents one of the better windows of opportunity in recent years, with more choice and greater scope to negotiate.”

The World Cup may contribute to further setbacks for the market – House prices suffer worst June price fall for 14 years

06/06/2026

Nationwide: annual house price growth reduced to 1.7% in May, from 3.0% in April.
Property prices fell by 0.6% month on month, it’s the first monthly decline this year.
Robert Gardner, Nationwide’s Chief Economist, says: “Given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates, some loss of momentum was to be expected.
“Moreover, housing affordability had been improving steadily in recent years and while market interest rates have risen in recent months, the impact on affordability has so far been modest. This provides some confidence that, if the latest shock passes relatively quickly, and energy prices normalise in the quarters ahead, any near-term softening in the housing market will also prove short-lived.”
https://www.propertyinvestortoday.co.uk/breaking-news/2026/06/annual-uk-house-price-growth-down-to-1-7-for-may/

Nathan Emerson, CEO of Propertymark, said buyers were making careful decisions. “Stable house prices will be welcomed by many buyers and sellers looking for greater certainty in the market after a prolonged period of economic volatility. Buyers who need to move are continuing to act decisively, particularly where mortgage rates have stabilised, and supply levels remain constrained.

Jonathan Hopper, CEO of Garrington Property Finders, said: “The imbalance in supply and demand, mixed with a hefty dose of war-related uncertainty, is forcing sellers to lower their price expectations and, in some cases, accept offers considerably below asking price.
“But as the volatility in the Gulf settles, the widespread rebalancing of prices will encourage more discretionary buyers that the time to strike is now. Lower prices are creating strong buying opportunities for the well-informed and agile.”
But Nathan Emerson, CEO of Propertymark, said buyers will be careful in the meantime. “Static house prices point to a market that is stabilising after a prolonged period of economic uncertainty and higher borrowing costs. Buyers are continuing to view and make offers, but they are negotiating more carefully and remain highly conscious of value and monthly mortgage costs.”

Annual house price growth slowed to 1.7% in May as higher borrowing costs and geopolitical uncertainty weighed on demand. – Annual UK house price growth down to 1.7% for May

20/05/2026

New Lloyds research reveals the most affordable places in the UK for first-time buyers:

• East Ayrshire tops the list, with average first-time buyer prices of £147,353
• Blackpool, Merthyr Tydfil and Mid and East Antrim also rank among the most affordable
• Average first-time buyer age is 32 – but falls to as low as 27 in some areas
• Lloyds’ new £5,000 deposit mortgage open to applications this week
• The cheapest area for first-time buyers in London is Barking and Dagenham with average FTB house prices of £363,748

Lloyds mortgage expert Amanda Bryden has tips for first-time buyers:
- Do your research – Get familiar with the homebuying process. From an Agreement in Principle to mortgage approval and completion.
- Get advice – Speak to a mortgage professional early on, don’t wait until you think you’ve saved enough or found you dream home. They can help explain what you can afford, typical costs and what to expect along the way.
- Explore your options – It’s important to know what support is available. A mortgage expert will show you options you might not have considered and guide you on ways to build up the funds quicker.

East Ayrshire in Scotland is the most affordable location in the UK for first time buyers, according to new research from Lloyds.

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.

Get the latest housing market data with our House Price Index. Fewer buyers in the market than a year ago, but those who remain are still getting deals done.

Buying Your First Home

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