Is now a good time to buy a house?
Higher housing supply may make it cheaper to get on the property ladder in 2026 but there are other factors to consider
House price growth has been slowing in the early months of 2026 but that doesn’t necessarily mean now is a good time to buy a property.
Analysts had hoped for a calmer start to the year after a busy 2025 that saw stamp duty thresholds drop and uncertainty about Autumn Budget tax rises.
But the housing market has instead been impacted by the war in Iran, which has dampened hopes of interest rate cuts and has even seen mortgage rates rise.
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Inflation also remains above the Bank of England’s target, hitting buyer budgets, while stamp duty costs are high.
This is all feeding into house prices in the early months of the year.
The latest Halifax House Price Index shows average prices edged down 0.1% in April on a monthly basis following a 0.5% drop in March, while annual growth also slowed from 0.8% to 0.4%. Some parts of the UK are even seeing house prices fall, particularly in London and the South of England.
This means that even though house price growth is slowing and falling in some cases, helped by increased supply, higher costs and economic uncertainty are still hitting demand.
What is the property market like right now?
- The property market is more positive for buyers than sellers right now
- There are plenty of new houses for sale, while house price growth is slowing and even falling in some parts of the country
- Changes to stamp duty thresholds in April 2025 and political and economic uncertainty may be deterring buyers
The latest Halifax House Price Index for April – the most recent data on the current housing market – shows a mixed picture.
The strongest growth is in the North East, where average prices rose 4.5% annually in April, while the North West recorded annual growth of 3.4%.
In contrast, the southern markets continue to see prices fall. The South East led declines, with prices down 2.0% year‑on‑year, while London saw average values fall by 1.4%.
Technically, slower house price growth and even falling values should help homebuyers.
Data from property website Rightmove shows the number of new homes for sale is at an 11-year high, pushing house price growth lower.
That may mean that buyers are spoilt for choice but despite an interest rate cut in December 2025, the cost of borrowing has been frozen since.
Mortgage rates have also been climbing as swap rates rise amid worries about the economy and geopolitical tensions, particularly in the Middle East.
That is even before you consider high inflation and stamp costs.
What’s happening with mortgage rates?
- The average two-year fixed rate mortgage is 5.78% as of 8 May 2026
- Mortgage rates have climbed since the outbreak of the Iran war but some lenders have made cuts
In its latest meeting on 30 April 2026, the Bank of England’s Monetary Policy Committee (MPC) voted to hold interest rates at 3.75% by an almost unanimous margin of 8-1.
The MPC attributed this to the “highly uncertain” context of the Middle East conflict, which has pushed up global energy prices.
Analysts have warned that interest rates may even have to rise instead of being cut to battle inflation.
This is keeping mortgage rates high, with pricing going back above 5% in recent weeks.
The average two-year fixed rate is now at 5.78%, according to Moneyfacts, while a typical five-year fix is at 5.70%.
Some lenders have been making cuts though amid hopes of continuing ceasefires between the US and Iran and it is possible to get a rate below 5%. This just underlines the importance of shopping around and keeping an eye on changes.
Lenders are also getting creative with their products to help boost demand as well with more relaxed affordability criteria and some 100% loan-to-value mortgages on the market.
Is now the right time to buy for you?
- Before looking for new houses for sale, check your financial position
- Consider how you’ll afford the deposit, mortgage and bills (and factor in inflation)
- Ask how you’d cope with the cost of a new home if your job or health changed
Slower house price growth is good for buyers as it may make a property you want more affordable, especially if your own wages are rising.
But it may not be as positive if you are also selling to trade-up as this may limit your own purchasing power.
The high levels of available housing stock has made it a buyer’s market, meaning there may be more room for negotiation to get a reduced price.
As well as raiding your savings for a deposit or relying on family for help, prospective buyers will need to weigh up whether they can afford monthly repayments – particularly in light of rising costs elsewhere.
While inflation is far from the sky-high levels during the worst of the cost of living crisis in 2022, price growth has remained stubbornly high, meaning your money is worth less in real terms.
The big unknown when it comes to buying a home is your own financial position.
Will you still be able to afford your home if you lose your job and your income reduces for a few months?
Building a robust property deposit, and keeping emergency savings on hand, should help shelter you from more unsettling forces in the wider world.
Aim to have three to six months’ worth of essential expenses in a competitive easy-access savings account, which can help protect you from unexpected expenses.
It’s worth doing the maths to understand what your monthly outgoings are likely to look like once you have completed a property purchase. Factor in any potential bill hikes, and plan for how you would manage if you were to experience a shock event like redundancy.
If you have accounted for these costs, you have the money and you are ready to go, then there is no need to hold back.
But if you are unsure and feel that buying now would stretch your monthly income to the max and leave you with limited emergency savings, it is probably better to wait. You might want to build up a larger deposit, negotiate a pay rise, or wait until mortgage rates are lower.
Five vital questions for property viewings
- After searching for new houses for sale you’ll need to book property viewings
- Asking certain questions can reveal costly property problems before you buy
- Common property problems include parking, broadband, wiring, boilers and the EPC
If you’ve decided to go ahead with buying a house or flat, it’s important to take your time during property viewings and ask lots of questions.
According to St. Modwen Homes' property expert Alison Maclean, there are five overlooked questions that could save house-hunters a small fortune:
- What’s lurking in the loft? Rodent droppings, old asbestos insulation, and dodgy DIY wiring can all be hiding in plain sight. So, during your visit, ask when the loft was last inspected and whether it's been properly insulated – and don’t be afraid to request access during your second viewing.
- How old is the boiler – and when was it last serviced? Boilers typically last 10–15 years, and a full replacement can cost thousands of pounds. So, if the boiler is towards the end of its lifetime, it’s worth negotiating on price – or asking for it to be replaced before completion.
Read more: ‘I replaced a gas boiler with a heat pump - here are five things I’ve learnt’ - What’s the parking situation really like? A designated space on the listing doesn’t always guarantee stress-free parking. Ask neighbours or check during peak hours to see how crowded the street gets – especially if the property is near a school or high street.
- What is the EPC? The Energy Performance Certificate rates a property's energy efficiency on a scale from A (most efficient) to G (least efficient) and gives an indication of how much it will cost to heat and power the home. Energy bills are rising, so taking a look at the EPC can provide insight into the potential running costs of the home.
- What’s the broadband speed and mobile signal like? Hybrid working is here to stay, and digital connectivity is more important than ever – yet it’s one of the most commonly overlooked details when buying a property. Check speeds using broadband checker tools, and ask the current owner about blackspots or dropped calls.
