The UK housing market right now feels a bit like being at a party where the music’s on, people are mingling but many guests are still standing by the drinks table, wondering if they should dance or head home. In other words, the market is alive and moving, but everyone’s being a bit cautious. Let’s explore what’s really going on — why the market feels steady but hesitant, what that means for movers, remortgagers, and first-time buyers, and whether now’s the right time to make your move.
What’s the mood in the housing market?
Are prices still rising?
Yes, but gently. House prices across the UK are still creeping upward, though at a much slower pace than in the boom years. The average home value has been edging up by around one to three percent annually — a sign of resilience rather than rapid growth. This steady rise shows that despite affordability challenges, there’s still solid demand for housing. Limited supply, population growth, and lifestyle changes continue to support prices.
Is everything rosy?
Not quite. The market has taken on a more cautious tone. Growth is uneven, and some areas are flat or even dipping slightly. Higher-value properties, especially in parts of London and the South East, are seeing softer demand as potential tax changes and affordability concerns weigh on confidence. Meanwhile, the North and parts of the Midlands are showing stronger price growth — driven by better affordability and local demand. So overall, the market is resilient, but buyers and sellers are moving more carefully than they were a year or two ago.
Why is everyone being cautious?
Mortgage rates and affordability
Mortgage rates have settled somewhere between the low and high extremes of recent years. The average two- and five-year fixed rates are sitting around the mid-4% range, which is manageable but still significantly higher than the ultra-low rates we saw during the pandemic. That means monthly repayments are steeper, and affordability remains the biggest challenge for many buyers. Even with incomes growing, higher borrowing costs limit what people can comfortably afford.
Deposits and budgets
For first-time buyers, the biggest hurdle continues to be the deposit. Lenders are offering some higher loan-to-value products again, but these often come with higher interest rates. Many hopeful buyers are saving longer to build up that crucial deposit, hoping to access better deals.
Regional differences
The UK property market isn’t one big story — it’s many smaller ones. The North East, North West and parts of Scotland are seeing relatively strong growth, while London and the South East are flatter. This reflects how affordability shapes demand. Regions where average house prices are lower are still attracting buyers, while in pricier areas, even a small rate increase can push monthly payments out of reach.
Policy uncertainty
With political and fiscal changes expected in the coming months, some people are waiting to see what happens. Speculation around property taxes and stamp duty tweaks has caused a little hesitation, especially among higher-end buyers. And although the government has promised to boost housebuilding, any real impact from new homes hitting the market will take years to materialise.
Is now a good time to move?
If you find a home you love and can afford, there’s a strong case for moving sooner rather than later. Because growth has slowed, buyers face less competition than in the frenzied post-lockdown years. Sellers are often more open to negotiation, and the pace of the market feels more balanced. Waiting for prices to “crash” or rates to “plummet” might not be realistic — both look set to stay relatively stable for now. So if you’ve done your homework, can afford the repayments, and the property feels right, now could be a sensible time to act. But caution still matters. Don’t stretch your budget too thin. If rates tick up again or your circumstances change, you’ll want to be sure your finances can cope. Think beyond the monthly mortgage payment — include maintenance costs, council tax, insurance, and any future repairs in your budgeting.
What about remortgaging?
For those coming to the end of their fixed deal, early planning is key. Start looking at your options several months before your current rate expires. Lenders are competing for business, and even small rate differences can make a big impact on your monthly payments. Don’t just focus on the rate either — check fees, flexibility, and whether you can make overpayments without penalties. If your circumstances have changed — perhaps your income has grown or you’ve paid down debt — you may qualify for a better deal than you think. On the flip side, if your income’s tighter or your loan-to-value ratio has risen, prepare for slightly higher costs. The message is simple: don’t wait until your lender’s letter arrives with your new rate. Start comparing early to give yourself choice and control.
What about first-time buyers?
First-time buyers are the lifeblood of the market, and while it’s still challenging, there are glimmers of opportunity. Because house price growth has slowed, affordability is improving slightly. It’s not suddenly “cheap”, but you’re less likely to face wild bidding wars or homes selling far over asking price. If you’ve got a solid deposit, a stable income, and realistic expectations, this could be a window to make your move. The key is to stay flexible — you may need to consider slightly different areas, or be open to homes that need a little TLC. Also, locking in a mortgage rate now gives certainty in a market where rates may move unpredictably next year. For many buyers, peace of mind is worth a lot.
What should you watch over the next few months?
Here are the main factors likely to influence the housing mood as we move into winter and 2026:
Interest rate decisions: The Bank of England’s next moves will be closely watched. Any cuts will feed into lower mortgage rates, though changes are likely to be gradual.
Government policy: The Autumn Budget could bring shifts to housing policy, tax, or stamp duty — all of which can influence buyer behaviour.
Inflation and wages: If wage growth keeps pace with inflation, affordability could slowly improve.
New-build supply: More homes being built will help in the long run, but short-term supply remains tight.
Consumer confidence: How people feel about the economy often drives what they do — sentiment is as powerful as any statistic.
Final thoughts
The UK housing market is best described as steady but watchful. Prices are holding firm, buyers are cautious but still active, and sellers are realistic. If you’re financially prepared and find the right property, now can be a very sensible time to make a move — particularly as the frenzy of the past few years has cooled. But it’s equally fine to take your time if you need to strengthen your deposit or stabilise your income. Whether buying, remortgaging, or simply keeping an eye on the market, the best approach is to stay informed, be flexible, and make decisions based on your own circumstances rather than chasing the perfect timing. After all, there’s rarely a perfect market — just the right one for you.
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Disclaimer:
This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.
While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
