Buying Your First Home, London (2026)

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.

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/live/cpwjw9dg2vjt
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.”

The BoE’s chief economist voted in favour of a rise but other rate-setters say the Bank should wait to see the extent of inflationary pressure.

26/04/2026

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,
- 45% say that house prices are too high,
- 44% say that lack of the deposit prevents them 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?
There are more opportunities than people realise.
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

19/04/2026

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?

14/04/2026

New report from Connells indicates that the effects of the Iran War are impacting the UK housing market.
“The number of new homes coming to market fell 7% year-on-year across Great Britain, the largest annual decline since April last year, shortly after the end of the SDLT holiday.”
https://www.estateagenttoday.co.uk/breaking-news/2026/04/instructions-fall-sharply-as-war-hurts-housing-market/
Even after March’s dip, applicant numbers are still 17% higher than in March 2019, indicating that underlying demand remains strong on an historic basis.
Aneisha Beveridge, Research Director at Connells Group, comments:
“Buyer demand cooled modestly, but it didn’t fall away, and sales levels remained relatively resilient – helped by the fact that many households were already progressing with cheaper mortgage deals secured earlier in the year.
“First-time buyers saw the smallest rate increases and consequently accounted for the highest share of March purchases on record.
“However, the clearest response has come from sellers, where confidence softened more visibly and fewer homes were brought to market.

Sales holding up but listings are down and discounting is more common – Instructions fall sharply as War hurts housing market

02/04/2026

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.

We reveal the 10 areas with the highest proportion of first-time buyers, based on new research from Lloyds Bank

21/03/2026

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.estateagenttoday.co.uk/breaking-news/2026/03/interest-rates-held-how-estate-agents-reacted-3/

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.”

The Bank of England held interest rates yesterday. – Interest rates held: How estate agents reacted

12/03/2026

Mortgages are raising

Ongoing conflict in the Middle East caused uncertainty and fear that inflation would rise.
Nationwide has increased rates on most of its products by up to 0.25%, and other banks, including HSBC UK and Coventry Building Society, have also said they will increase rates.
A Nationwide spokesperson said: "Like other lenders, we are having to increase rates following a significant rise in swap rates as a result of recent global events”.
https://www.bbc.co.uk/news/articles/cly1jxdv439o

Adam French, head of consumer finance at Moneyfacts said: "Recent days have been some of the most turbulent in the UK mortgage market since the aftermath of the September 2022 mini-Budget."
Moneyfacts’ data shows:
• The average rate on a two-year fixed deal stood at 5.01%, up from 4.84% on Friday
• Over the same period, the average rate on a five-year fixed deal has risen from 4.96% to 5.09%
• Over the last two days, 472 residential mortgage products have been withdrawn from the market, according to Moneyfacts. This is about 6.5% of the market, leaving 7,164 deals to choose from.

Earlier this week, the National Institute of Economic and Social Research, an economic think tank, said that if higher energy prices persist, it could force the Bank of England to push interest rates back up, above 4%.
Before the US-Israel war with Iran, financial markets were expecting a cut in UK interest rates at some point this year, some analysts expected the cut as early as March.
But these expectations disappeared after rising oil prices raised the prospect of higher inflation.

Nationwide, HSBC and Coventry Building Society are all putting some mortgage rates up.

06/03/2026

Nationwide February HPI : 1% growth annually and 0.3% monthly

After Rightmove reported flat property prices in February, Nationwide HPI (House Price Index) shows a small increase.
https://www.estateagenttoday.co.uk/breaking-news/2026/03/nationwide-house-price-index-hope-remains-high-as-market-flattens/?

Robert Gardner, Nationwide’s chief economist, said: “This reinforces the view of a modest recovery after a dip at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget. Nevertheless, the number of mortgages approved for house purchase remain close to the levels prevailing before the pandemic.
“Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”
Iain McKenzie, chief executive of The Guild of Property Professionals commented: “We’re seeing clear signs of a measured recovery rather than a rapid rebound.
“One factor keeping price growth in check is the elevated level of supply, giving buyers both great choice and negotiating power. This is helping to stabilise values even as demand begins to improve.
OBR: house price inflation will average just over 2.5% until 2030/2031.
https://www.introducertoday.co.uk/breaking-news/2026/03/obr-releases-new-forecasts-for-inflation-and-housing-market/?
Stability is good for first-time buyers! No wild swings up and down.

The OBR forecast was released shortly after the Chancellor's statement to MPs – OBR releases new forecasts for inflation and housing market

Buying Your First Home

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