It’s the British dream to become a homeowner, but for many young people it’s just that – a dream.

The average house price in the UK now sits at around £300,000, but if you have your heart set on the capital then it’s more like £550,000.

So, if you’re fledging, you will need to cough up a deposit of around £30,000 to £55,000 as a 10% deposit. You may be able to get a lower loan to value, with some lenders going as low as 5%, but you will need a polished credit score.

And remember, what you do not fulfil with a deposit ends up going to mortgage debt, the cost of which will vary throughout your mortgage term, which is typically 25 years.

For most first time buyers, this deposit is out of reach; after all, the average salary for 22 to 29-year-olds is £33,000. This would generate an income of £2,273 take home pay a month, and that is not taking into account pension contributions. It’s around £2,163 with a 5% pension contribution.

Now the average rent in the UK is £1,374, according to the Office for National Statistics, but it largely depends on where you live. London rent prices can exceed £2,000 a month on average.

So, there’s little left to save after living expenses, household bills and hopefully some fun.

But could moving back home for at least three years be worth it? And if you are a parent, would you let your adult child return rent free?

How long would you have to live with parents to save for a deposit?

Based on the median salary and a gross income pay of £2,163, which includes pension contributions, if you could put away £1,200 a month (just below the average rent) strictly and use the remaining for living expenses and to help support household expenses, then you could accumulate over £43,000 over three years.

Saving or investing the deposit over time means your final cash pot could be bigger, though if you want to use that deposit in fewer than five years, investing it may not be the best option as your cash won't be as liquid.

Of course, your savings habit would have to be strict – but staying with your parents and removing the rent pressure for at least three years could finally help you get onto the property ladder.

Rent is one of the biggest expenses young people face and even if they earn more, their ability to save is stumped by high renting costs.

Would you live with your parents for three years?

I asked a few ‘young’ people if they would live with their parents for three years. Some said they would take the hit whereas others said it would not work because their parents lived too far from where they worked. One person said it was simply not worth it as it could damage their mental health.

Checking in: the hotel of mum and dad

Recent research from think tank Resolution Foundation shows two in three young adults are now residing with their parents to save money.

Gen Z have become the stay at home generation, with 63% of young adults aged 20 to 24 living in their family home, and those aged 25 - 29 are also heading back to their childhood bedroom.

While the hotel of mum and dad is helping to make it easier for young people to save for a house deposit, the report found that the bank of mum and dad is still pivotal in helping them get a foot onto the property ladder.

But whether it’s the hotel or the bank of mum and dad, or even grandparents in some cases, for most adults born in the mid-1990s onwards, buying a house is simply out of reach without additional support.

These prolonged stays at the ‘Hotel Mum and Dad’ should theoretically also make it easier for young people to save for a deposit for their first home. However, the separate, but related, ‘Bank of Mum and Dad’ is still pivotal to getting people onto the housing ladder. Around one-third of first-time buyers last year had parental help, around 20 percentage points more than twenty years ago.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

The average asking price for a property fell in June, dipping by 0.6% (equivalent to £2,113), as historically high stock and low buyer demand have kept them on ice.

It marks the largest fall recorded in June for 14 years, and may be a result of the May heatwave distracting buyers from house-hunting, according to the latest house price index from Rightmove.

The dip means the average asking price for a property in the UK is now £376,191, around 0.5% lower than this time last year.

While summer tends to be a slower season for the housing market, this June has been particularly difficult for prices, which typically rise modestly in the month.

The recent slowdown may be a result of the high level of competition and low demand in the market, according to Rightmove.

Housing stock is still at a historic high, and sellers are responding to this by cutting asking prices more fiercely in an attempt to make their homes more attractive to buyers.

Buyer demand was down 10% year-on-year in May. One reason for this larger-than-normal dip in demand could be higher mortgage rates.

Rates have been high since the beginning of the Iran war on 28 February, the effects of which are expected to weigh heavily on the UK economy.

Inflation in particular is expected to rise, it’s unlikely the Bank of England will cut interest rates in 2026. That, in turn, means mortgage rates are set to stay high for the foreseeable future.

Rightmove adds that slumping demand may be worse this year as heatwaves and the World Cup are set to distract buyers for the next few months.

Colleen Babcock, property expert at Rightmove, said: “It’s unusual to see a price fall of this size in June, as we would normally expect to see modest price growth at this point in the year.

“What’s different this time is a combination of factors, including wider economic uncertainty, the timing of the May bank holiday and unusual heatwave, and the high number of homes on the market, which together appear to be bringing forward the traditionally slower summer market.”

While asking prices have dipped, sales activity has remained relatively steady. Though Rightmove’s data shows sales are down 6% year-on-year, 2026’s numbers are broadly in line with those from recent years (about the same as 2024 and 5% more than 2023).

Babcock added: “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.”

Asking prices grew in Scotland and London

While almost all regions in the UK saw average asking prices fall, Scotland and London actually saw them rise in June.

The average asking price for a house in Scotland is up 0.8% in June, bringing it to £207,011. Sales in the country are also the fastest in the UK, with the average seller only having to wait 31 days to find a buyer. Overall, asking prices are up by 3.3% on the year.

Asking prices in London have been falling recently, but June’s data has bucked the trend. The average home in the capital is now 0.3% more expensive, with average asking prices coming in at £687,080.

Despite the June bump, asking prices for homes in the capital are still lower today than they were a year ago, slumping by 1.2%.

The poorest-performing region in the UK for asking price growth in June was Wales. The average asking price for a house in the country is now £271,459, down 1.6% this month and 0.3% on the year.

RentGuarantor Holdings (Aim: RGG) has been given a boost by the Renters' Rights Act, one of the most significant pieces of legislation to hit the UK rental market in decades. It's only been in force since the beginning of May, but the Act is already driving a complete rewriting of the market.

Under the new law, fixed-term tenancies have been abolished, “no fault” evictions are no longer allowed, rents can only be raised once a year, and during the first 12 months of the tenancy, the landlord cannot serve notice to move back into the property or sell it. These changes, far from protecting tenants, have forced landlords to become more defensive.

The changes have made it much harder for landlords to evict tenants who can't or won't pay their rent, piling pressure on a system that's already on the verge of collapse. According to professional body Propertymark, due to lengthy court backlogs, the average time from claim to repossession has risen to more than 68 weeks, compared with just over 20 weeks in 2019. At the point of eviction, average unpaid rent stands at £12,708 across England and Wales and £19,223 in London.

Landlords have responded by demanding that tenants provide a guarantor before they agree deals. According to multiple reports, around 40% of landlords now require guarantors for both new and existing tenants. This is where RentGuarantor comes into play.

How RentGuarantor works

The firm is a rare example of how effective London's capital markets can be for early-stage growth businesses. Founded in 2016 by Paul Foy, a property investor since the mid-1980s, RentGuarantor does what it says on the tin – guarantees rents. Tenants pay a fee (£20) for an initial background check and the firm uses tools such as Open Banking and AI to calculate how much the tenant can afford and if they're able to maintain payments. If the tenant passes the check, which should be completed the same day, RentGuarantor can offer the guarantee.

This incurs a further fee, usually around three to five weeks' rent, depending on the underlying risk profile. When the tenant has paid and signed, RentGuarantor provides a legally binding guarantee of rental payments to the landlord or letting agent. Unlike traditional guarantors, such as parents or grandparents, this provides an extra layer of protection for the landlord. RentGuarantor passes the risk to a panel of insurers while collecting the origination fee and remaining the key point of contact for customers.

Five years of RentGuarantor Holdings on the London market

After spending five years building the foundations, Foy and his team took the company public in 2021. It listed on the Aquis exchange in 2021 with hardly any revenue and moved to the Aim junior market in the second half of 2025. The new listing raised £4 million in 2025 to support its growth efforts and it ended the year with revenue of £2.4 million, up 87% year-on-year. The founder has remained a key shareholder with a 30% stake.

RentGuarantor hasn't charged into the market seeking break-neck growth and drawing down shareholders' goodwill to fund spending. There's a very tight grip on marketing spending, which totalled just £200,000 in 2024 and £500,000 in 2025 against revenue of £2.4 million, or around £165 per contract (based on the year-end figure of 3,123 contracts). The focus over the past five years has been on getting the offering right and putting in place the right technology and team to scale up effectively.

The firm has now reached the point where this hard work is beginning to pay off. In May, the month the Renters' Rights Act came into force, RentGuarantor recorded a 115% increase in unaudited revenue compared with the average for the first four months of the year. Moreover, revenue per contract was up 24%. The group also recorded its first positive monthly Ebitda earnings since its admission to trading – well ahead of the board's expectations.

The challenges facing RentGuarantor Holdings

The key risk for the group here will be scaling up without falling flat on its face, as so many firms do when they encounter a sudden surge in demand. The Act is driving demand for guarantees, but it'll also lead to a surge in disputes.

To help, RentGuarantor is looking to AI and has an expert on the matter in its orbit. The AI strategy is being led by Dave Cliff, a non-executive director and professor of computer science at the University of Bristol. He previously worked at MIT's artificial intelligence laboratory, so unlike many other businesses, which seem to be turning to AI with little actual understanding of the benefits, drawbacks and costs, RentGuarantor looks well-placed to exploit the benefits of the technology fully. Management estimates the group can process 20,000 contracts per year, but that will rise to 100,000 with AI's help.

According to house broker Shore Capital, RentGuarantor could agree 7,000 contracts this year, 13,000 in 2027 and 62,000 by 2030. Revenue could hit £6 million in 2026, rising to £19 million by 2028 and £54 million by 2030. Even if it achieves this lofty growth, it would still leave the group at only 3.4% of the potential total market.

Now that the firm is essentially self-funding, there's scope for marketing spending to rise. Shore Capital expects a ten times rise by 2030, easily covered by the firm's 79% gross margin. The broker has pencilled in adjusted earnings per share of 3.6p by 2028. As with all early-stage firms, these forecasts are likely to be wrong, but they illustrate the growth potential if the firm manages to scale up over the next 12 months. This is a high-risk play, but one with a huge and growing market to support it.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

The Caprons, Lewes, East Sussex

This Grade II-listed Georgian house in the centre of Lewes was once home to historian Asa Briggs, who was also a Bletchley Park code breaker. The garden includes a Grade-II listed, octagonal summer house. 5 bedrooms, 4 bathrooms, 3 reception rooms, kitchen, cellars, roof terrace, walled garden.

Price: £2.1m Jackson-Stops 01444-484400

Broomshields Hall, Satley, Bishop Auckland, County Durham

A Grade II-listed Georgian house with gardens that include a one-bedroom cottage, two summer houses and a lake. The house has a carved oak staircase and a large kitchen with an Aga. 4 bedrooms, 4 bathrooms, 3 reception rooms, library, 18 acres.

Price: £1.75m Finest Properties 0330-111 2266

The Manor House, Great Harrowden, Northamptonshire

A Grade II-listed manor house in a popular village, set in south-facing gardens with a kitchen garden with a greenhouse and a circular summer house with sofas and a fridge for wine. The house has beamed ceilings, panelled walls and period fireplaces. 6 bedrooms, 4 bathrooms, 3 reception rooms, breakfast kitchen, attic, pond, 0.8 acres.

Price: £1.15m Fine & Country 01604-309030

The Court, Axbridge, Somerset

A Grade II-listed Georgian house in Axbridge with views towards Glastonbury Tor. The house is set in gardens that include a summer house and an area dedicated to archery. It has flagstone and oak floors, period fireplaces and an indoor swimming pool with a gym. 7 bedrooms, 5 bathrooms, 3 reception rooms, breakfast kitchen, garden room, cinema, courtyard, parking, walled gardens, kitchen garden, 1.15 acres.

Price: £2.395m House & Heritage 01257-441990

Orchard Cottage, Wood End, Ardeley, Hertfordshire

A Grade II-listed, 17th-century house comprising three original cottages, with a summer house with a wood-burning stove and Wi-Fi. The house has exposed wall and ceiling timbers and inglenook fireplaces. 4 bedrooms, 2 bathrooms, reception room, gardens, 0.75 acres.

Price: £1.15m Fine & Country 01920-443898

Polwarth Terrace, Merchiston, Edinburgh

A duplex apartment on the first floor of a period property in the sought-after area of Merchiston. The flat retains its period fireplaces and has a dining room with French doors opening onto a balcony and a spiral staircase leading to a garden with a summer house. 6 bedrooms, 3 bathrooms, reception room, office/bedroom 7, dining kitchen, garage, summer house, parking.

Price: £985,000+ Savills 0131-247 3770

Moreves Manor, Great Waldingfield, Sudbury, Suffolk

A Grade II-listed, 17th-century house set in large gardens that include a wildlife pond and a summer house complete with a shower, sauna and wood-burning stove. The house has exposed wall and ceiling timbers and a breakfast kitchen with an Aga. 6 bedrooms, 2 bathrooms, 2 reception rooms, office, garden room, outdoor swimming pool, 1.58 acres.

Price: £950,000+ Strutt & Parker 01473-220444

Heamoor, Penzance, Cornwall

A renovated, Grade II-listed Cornish long house set in landscaped gardens with a tree house, an orangery overlooking the kitchen garden and a summer house that is used as a pottery studio. The house has Georgian sash windows, open fireplaces and a newly fitted kitchen with French doors leading onto the gardens. 4 bedrooms, 4 bathrooms, 3 reception rooms, study, utility with en-suite shower, workshop, paddock, stable block, 2.5acres.

Price: £1.2m Savills 01872-243 200

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The Renters’ Rights Act went live in May, ending no-fault evictions and shifting tenancies to rolling contracts.

The reforms also ban landlords from requesting more than one month of rental payment upfront.

The one month advance payment can only be paid once a tenancy agreement is signed.

This means tenants only need to pay a deposit when moving into a property and one month upfront if requested.

Before the changes, landlords could request large amounts in advance.

Requesting larger upfront rent payments was traditionally a way to reduce the risk of rent arrears, particularly when tenants failed to meet affordability criteria.

We reveal alternative ways to test tenant affordability and reduce the risk of rent arrears.

Tenant referencing

A key part of choosing a tenant is referencing.

Landlords can conduct credit checks, get employer references and assess affordability.

You can also talk to a tenant’s previous landlord to check if rent was paid on time and if the property was kept in a good condition.

Some of these checks can be done yourself but there are companies such as Goodlord and HomeLet who can do the work for you.

Nouran Moustafa, practice principal at Roxton Wealth, said: “Landlords need to stop seeing large upfront rent as the only form of security. It was never a perfect test of affordability anyway. Someone can have cash today and still be financially unstable three months later.

"The better approach is proper, evidence-led referencing, income checks, employment status, credit history, previous landlord references and whether the rent is genuinely affordable against the tenant’s wider commitments.”

Rent guarantors

Some analysts predict that landlords will become more reliant on guarantors.

This is where a family member is required to set aside funds in case a tenant fails to pay rent.

Analysis by property insurance technology firm Zero Deposit found the average renter in England is likely to fall short of standard affordability requirements of 2.5 times the annual rent.

With average rents currently standing at £1,438 per month, equivalent to £17,256 per year, tenants would typically need to earn at least £43,140 annually in order to pass affordability checks, Zero Deposit said.

However, average earnings across England currently sit at £41,859, leaving the average renter £1,281 below the required threshold.

Sam Reynolds, chief executive of Zero Deposit, said: “While the Renters’ Rights Act is designed to improve security for tenants, it also significantly changes the way landlords manage financial risk within the private rental sector. With restrictions on upfront rent payments and fewer traditional safeguards available, landlords and agents naturally place greater emphasis on affordability checks and income protection when assessing prospective tenants.

"As a result, we expect guarantors to become an increasingly common requirement for renters who fall outside standard affordability criteria, particularly younger tenants, overseas applicants, self-employed workers, and those moving to high-cost rental areas."

Rent guarantee insurance

Landlords can also protect themselves with rent guarantee insurance.

In return for a premium, this type of insurance pays out the monthly rent amount for a set period if your tenant falls into arrears.

It may also cover the legal fees associated with serving notices and legally evicting tenants.

Michelle Lawson, director of Lawson Financial, said: “Rent guarantee insurance is now a must and is a low cost way of protecting your rental income against most adversities.”

Find a good lettings agent

A lettings agent should have a book of reliable tenants that they have already reference and recommend.

Using a lettings agent can also help keep up with ever-changing rental rules and regulations to ensure you are renting your property out legally.

Lawson added: “A good letting agent will be fully referencing prospective tenants.

“Self-managing landlords will be the ones potentially sleep-walking into disaster as so many are inexperienced and rely on social media to find tenants and for advice- they need to ensure that they use reputable channels.

“There are many industry backed resources that they can call upon but a number will still cut corners which, with the Renters Rights Act and subsequent council imposed fines, could prove costly. to avoid doubt, they should now be employing the services of a good letting agents who knows the new legislation as the buck stops with the landlord regardless.”

UK REITs – real estate investment trusts – have drastically underperformed the wider market over the past year. The FTSE All-Share index excluding investment trusts has produced a total return of around 22%, while industrial REITs – the largest group in the sector – has returned just 6.8%, mostly from income.

However, while investors are clearly not interested in the sector, trade buyers and private equity are. Five years ago, there were 82 listed REITs. More than half have since been acquired or liquidated. Private-equity giant Blackstone has been especially active, first taking out St. Modwen Properties and Industrials REIT. It then beat Tritax Big Box (LSE: BBOX) in a battle for Warehouse REIT, before selling assets to Tritax in exchange for a 9% stake.

The trend looks set to continue. Earlier this year, British Land (LSE: BLND) acquired Life Science REIT. More recently, LondonMetric Property (LSE: LMP) – which has completed several deals in recent years – and Schroder Reit (LSE: SREI) have teamed up on a bid for Picton Property Income (LSE: PICT), although the outcome remains unclear. Last week, some of Picton's shareholders told the Investors' Chronicle that they are unhappy with the proposed terms.

Unwarranted discounts on UK REITs

Derwent London (LSE: DLN) offers one of the best examples of value in the sector. The company owns a portfolio of high-quality offices in central London and trades at a 47% discount to net asset value (NAV), with a 4.6% yield. In an attempt to close the discount, management recently announced a £50 million share buyback, signalling it believes this is a better use of capital than buying additional assets. You can't criticise management for buying back stock – it's the equivalent of buying a new building at a 50% discount.

Yet it's clear that something has gone horribly wrong in this market, given that London is set to run out of high-quality office space within the next few years and rents are breaking records.

Grainger (LSE: GRI) offers another example. This is one of the largest residential landlords in the country and can't build new properties fast enough to meet demand. It has consistently reported an occupancy rate in the high 90s and last year recorded overall rental income growth of 7.8%. Yet the shares have fallen 29% over the past 12 months and now trade at nearly 50% discount to NAV, with a yield of 5.4%. Mike Ashley, founder of retail group Frasers, has been buying as others are selling. He owns just under 5% of the company via derivatives.

The value catalyst

Other examples include the likes of Great Portland Estates (LSE: GPE), which is trading at 60% of NAV (it focuses on development more than income, so has a lower 2.7% yield). Even relatively popular REITs such as LondonMetric and Supermarket Income (LSE: SUPR) are trading at around 90% of NAV, with yields of around 7%.

In general, UK REITs are changing hands at some of the lowest valuations in recent memory. Yes, they could get cheaper, but sooner or later they are just going to be too good for trade buyers and private equity to pass up. This should be compelling for value investors, since value investing works best if there is a clear potential catalyst to realise that value. Given the continued liquidation of the London equity market, it could only be a matter of time before every remaining deeply discounted REIT gets taken out.

If and when that occurs, investors who buy at today's valuations could see attractive capital gains. In the meantime, while they wait they can pick up dividend yields of 5%-7% – in many cases derived from long-term contracts with high-quality tenants.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

Ramshaw Mill, Wark, Hexham, Northumberland

A Grade II-listed, 12th-century former watermill with gardens arranged in a series of “rooms” that include an orchard. It has exposed beams and wood-burning stoves. 8 bedrooms, 3 bathrooms, 4 reception rooms, 2 kitchens, outbuildings, courtyard, barn, 1 acre.

Price: £1.2m Finest Properties 0330-111 2266

The Old Vicarage, Castle Hedingham, Halstead, Essex

A Grade II-listed, early 18th-century house overlooking a castle and a church, with gardens that include a heated swimming pool and an orchard. It has grand fireplaces and vaulted cellars. 9 bedrooms, 5 bathrooms, 3 reception rooms, gym, 1-bedroom cottage, 1 acre.

Price: £1.75m Knight Frank 01394-334570

Bretforton Hall, Bretforton, Evesham, Worcestershire

A Grade II-listed late 18th-century house with a crenellated tower and two acres of gardens that include a swimming pool and an orchard. The house has a drawing room with Gothic arched windows, a vaulted ceiling and period fireplaces. 6 bedrooms, 5 bathrooms, 4 reception rooms, study, studio, breakfast kitchen, garage, 2 acres.

Price: £2.3m Morgan Aps 01905-384848

Hawksfield, Clifford, Herefordshire

A modern Passivhaus situated close to Hay-on-Wye. It has an A-grade energy performance certificate, gardens that include a dining terrace on the edge of an ornamental pond and a small orchard. The house is largely open-plan with an open-tread oak staircase and French doors leading onto a balcony. 3 bedrooms, 2 bathrooms, reception room, open-plan kitchen/dining/living room, en-suite studio outbuilding, 0.5 acres.

Price: £895,000 The Modern House 020-3795 5920

Copplestone House, Tiverton, Devon

A house set in mature gardens with outdoor entertaining areas, a covered outdoor kitchen, a walled kitchen garden and an orchard. It has exposed beams, open fireplaces, and a drawing room with French doors opening onto a terrace. 6 bedrooms, 4 bathrooms, 2 reception rooms, 1-bedroom annexe, barn, 2.5 acres.

Price: £1.65m Strutt & Parker 01392-215631

Woolgarston, Corfe Castle, Wareham, Dorset

A period cottage in a sought-after village within the Isle of Purbeck, an Area of Outstanding Natural Beauty. The large gardens include stone terraces and an orchard enclosed by a mature beech hedge. The house has exposed beams, a large inglenook fireplace and a kitchen with an Aga. 3 bedrooms, 2 bathrooms, reception room, outbuilding with utility and store, 0.62 acres.

Price: £1.13m Savills 01202-856800.

The Green, Nun Monkton, York, North Yorkshire

A Grade II-listed Georgian house overlooking the village green. It is set in large gardens with terraces and an orchard. It has exposed beams, panelled walls, open fireplaces and a dining kitchen leading onto a courtyard. 5 bedrooms, 3 bathrooms, 3 reception rooms, study, outbuilding with garage and games room, greenhouse, summerhouse, 0.7 acres.

Price: £1.695m Savills 01904-617820.

The Orchards, Bedham, Fittleworth, West Sussex

A picturesque Grade II-listed cottage dating back to the 1600s with landscaped cottage gardens that include topiary, winding paved paths, a swimming pool, two ponds, a stream and a wildflower meadow, along with an established orchard planted with apple, quince, cherry and plum trees. The house has exposed wall and ceiling timbers and inglenook fireplaces. 3 bedrooms, bathroom, reception room, barn, 1.56 acres.

Price: £1.43m Knight Frank 01428-770562.

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The government is considering plans to hit non-UK resident property owners with an extra "mansion tax" charge in a bid to raise more cash.

A consultation launched by HM Treasury explores the possibility of applying a “non-resident premium” on top of the High Value Council Tax Surcharge (HVCTS), also known as the “mansion tax”.

The consultation says: “In high‑pressure housing markets, particularly in areas such as London, there is interest in understanding whether demand from non‑UK resident owners may be contributing to pressures on housing availability and prices.”

The extra non-resident surcharge is just being considered and will not necessarily come into effect. The government’s consultation closes on 14 July.

An HM Treasury spokesperson said: “The government is inviting views on whether there could be a case for a non-resident premium, as part of a wider consultation which seeks to address a longstanding council tax unfairness in this country.

“We welcome views from all interested parties, including on whether demand from non-resident owners may be contributing to housing pressures.”

What is the mansion tax and how would a non-resident premium be applied?

The HVCTS will take effect from April 2028 and apply to homes in England worth £2 million or more. The charge will be owed once per tax year.

The chancellor has claimed the surcharge will make the council tax system fairer.

The Valuation Office (VO), which is part of HMRC, is set to carry out a valuing exercise to assess which homes the surcharge will apply to.

Homes valued at £2 million or more but less than £2.5 million will be charged £2,500.

Properties worth £2.5 million or more, but less than £3.5 million will need to pay £3,500. Homes worth between £3.5 million and £5 million will need to pay £5,000. Properties worth £5 million or more face a £7,500 surcharge.

These charges are set to be increased each year in line with the Consumer Price Index (CPI) measure of inflation. Revaluations will be conducted by the VO every five years.

When it comes to the non-resident premium, there is no further detail in the government’s consultation on how the extra levy would be applied if it did come into force.

What could the effect of the premium be?

Marc Acheson, global wealth specialist at pensions and life insurance firm Utmost, said: “This latest proposal is likely to raise far less revenue than envisaged as more people will consider selling London properties, putting further downward pressure on valuations at the top end of the housing market.

“More broadly, it risks further damaging the UK’s reputation as a destination for wealth and accelerating the ongoing exodus of wealthy international individuals that began in earnest following the abolition of the non-dom regime at the Autumn 2024 Budget.

“The economy cannot afford to lose these individuals, who are the largest contributors to the tax base, and once this cohort leaves it is very hard to replace them.”

Sian Armitage, tax director at tax advisor Mark Davies and Associates, said the premium could push non-resident property owners weighing up a sale into putting their property on the market.

“For those that are undecided, they may treat this as yet another reason to sell, or consider this as an indication of things to come,” Armitage said.

However, Armitage added that because the levy would be applied to non-residents “it does imply that those individuals are not spending significant time in the UK in any case, so I don’t envisage this policy alone as having a negative impact”.

Meanwhile, Peter Ferrigno, director of tax services at consultancy Henley and Partners, said making the HVCTS slightly higher for non-UK residents would be an “inconvenience”, but it was unlikely the introduction of such a premium on its own would be enough to make wealthy individuals sell up.

But, he said the bigger issue is they could leave when also considering “many other changes, and an indication that there will still be more demands for a bit here, a bit there, a bit more after that, and then...who knows what's next”.

What is a non-UK resident?

Non-UK residents pay tax on their UK income, but not on their foreign income. In contrast, a UK resident would typically pay UK tax on income from both sources.

You are generally classed as a non-UK resident if you spend fewer than 16 days in the UK each tax year or work abroad full-time and spend fewer than 91 days in the UK each tax year and no more than 30 of those days are spent working.

The statutory residence test (SRT) determines whether you are resident in the UK under UK domestic tax law for tax years 2013/14 onwards. You can find out more on gov.uk.

UK house prices have fallen and the negative trend could worsen before the end of the year, experts warn.

The latest house price index (HPI) data from Nationwide reveals property values fell by 0.6% in May to £278,024, compared with the month before.

Meanwhile, the building society said annual house price growth slowed to 1.7%, down from 3% in April.

Robert Gardner, chief economist at Nationwide, blamed the fall on the conflict in the Middle East, which has seen mortgage rates rise and consumer confidence hit.

Data firm Moneyfacts says the average interest rate on a two-year fixed mortgage deal is 5.68% as of 1 June, up from 4.83% on 27 February, a day before the US and Israel launched strikes on Iran.

Gardner said: “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.”

Nationwide is not the only major lender to show a month-on-month fall in house prices since the outbreak of tensions in the Middle East. The Halifax house price index reported a 0.5% fall in the month to March 2026 and a further 0.1% drop in the month to April.

Meanwhile, the latest data from the Office for National Statistics shows the average UK house price fell from £269,204 to £268,132 between February and March 2026.

Could house prices fall further in 2026?

Lenders, experts and economists were relatively optimistic about the prospects for future UK house price growth at the start of 2026, but tensions in the Middle East have tempered any positivity.

The latest RICS UK Residential Market Survey suggests higher mortgage rates have weighed down on buyer demand.

There’s also a glut of homes on the market. According to Rightmove, the number of homes for sale is at its highest level for this time of year since 2015.

This is being reflected in asking prices. Rightmove’s latest HPI shows average asking prices were 0.3% lower in May 2026 compared to the same month a year ago.

Estate agents Savills is now predicting house prices to fall by 2% in 2026, revised down from a forecast made in December 2025 of 2% growth.

In London, house prices could fall by as much as 4% and 3.5% in the South East and East of England, Savills suggested.

Meanwhile, Deutsche Bank is expecting property values to drop by between 3% and 5% this year.

Sanjay Raja, UK chief economist at the bank, said the Iran conflict had “likely put an end to any hopes of an imminent housing market recovery” in 2026.

Even economists and estate agents that are more upbeat in their predictions have revised down earlier forecasts.

Estate agent Knight Frank is now expecting property values to increase by 1.5% in 2026, down from a previous estimate of 3% made in September 2025.

Tom Bill, head of UK residential research at Knight Frank, said he expected “continued downward pressure” on housing transaction activity as lower interest mortgages drop off the market.

Economic research firm Pantheon Macroeconomics has also forecast prices to increase by just 1% in 2026, down from a previous estimate of 3%.

We reveal whether it’s a good time to sell a house in another article.

Landlords may have only just finished preparing for the new rental reforms introduced in May but there are plenty of other deadlines to be aware of in 2026 and you could be fined up to £40,000 for failing to comply.

The buy-to-let sector has faced numerous shakeups in recent years, with extra stamp duty charges, the end of mortgage interest relief and changes to capital gains allowances.

The most recent overhaul came last month when the Renters’ Rights Act was introduced, ending no-fault evictions and making tenancies more flexible.

Landlords had until the end of May to provide tenants with an information sheet of changes.

That is just the beginning though and there are still other changes that landlords need to prepare for and failure could result in hefty fines.

Jack Malnick, managing director of property information website Landlord Resource, said: “While there isn’t another major deadline associated with the new Renters’ Rights Act that you need to consider this year, there are a lot of ongoing aims you should be taking into account each month to meet future regulations and avoid additional fines.”

Here are some of the other major rental dates and deadlines for landlords to be aware of.

23 June 2026: The Housing Health and Safety Rating System (HHSRS) changes

Updated health and safety rules mean landlords must ensure their properties are maintained to a good standard for tenants or face penalties of up to £40,000 under the new Housing, Health and Safety Rating System (HHSRS) coming into force on 23 June.

Local authorities use the HHSRS to look into potential health and safety risks in homes in England and Wales. Changes introduced under the Renters’ Rights Act are intended to make the rules easier to understand and enforce.

The current more complicated A-J rating system is being replaced, under the changes. From 23 June, any hazard discovered in a landlord’s property during a local authority inspection will be categorised as high, medium or low.

High risk hazards (known as Category One) will continue to trigger councils' duty to take action against the landlord. The council will still be able to use its discretion when it comes to dealing with medium or low risk issues (known as Category 2).

Under the updated HHSRS, the ‘risk of harm’ rating has also changed, from the existing ‘one to four’ levels to new ‘extreme, severe, serious, and moderate’ categories. Again, the bandings haven’t changed, just the descriptions.

The advice from the National Residential Landlords’ Association (NRLA) is that if landlords are complying with all current health and safety guidance under the HHSRS they don’t need to do anything differently.

“However it is vital that you continue to carry out regular inspections of your properties to make sure they are hazard free and safe for your tenants to live in,” the NRLA said.

The revised HHSRS will affect homes in England only. Wales has different regulations and will need to adopt the guidance separately, so will be using the existing HHSRS until further notice.

31 July 2026: Final court date for section 21 notices

Any section 21 notice or section eight eviction notices filed before the Renters’ Rights Act came in must hit court by this date or they will lapse.

Late 2026: Regional rollout of Private Rented Sector database

The government’s Private Rented Sector (PRS) database is due to launch later this year in the next stage of the rental reforms. It will be gradually rolled out in different regions.

Landlords will be required to register themselves, their properties, and their compliance status on an area-by-area basis.

2027: PRS database becomes mandatory

No precise date has been given but it will be mandatory for landlords to be on the PRS database at some point in 2027.

This is supposed to make it easier for tenants to identify who their landlord is.

End of 2028: New Landlord Ombudsman

By the end of 2028, it will be mandatory for landlords to be members of a new Landlord Ombudsman and to be on the PRS database before they can even list a property for rent.

Failure to register to the new PRS Database and ombudsman could lead to an up to £7,000 civil fine, or up to £40,000 repeat fine.

1 October 2030: EPC changes

Currently, landlords can only rent out a property if it has a minimum Energy Performance Certificate (EPC) rating of E.

This will rise to C from 1 October 2030, meaning landlords have four years to start looking into energy efficient measures.

2035: Decent Homes Standard

The full Decent Homes Standard will be introduced in 2035.

Under the standard, properties must be free from hazards, in a reasonable state of repair and with reasonable services such as a kitchen and bathroom and free from damp or mould.

Landlords can be fined up to £30,000 if their rental properties are found to be below the Decent Homes Standard. The HHSRS remains the statutory framework for hazard assessment under the Housing Act 2004, enforced by local authorities. The DHS complements rather than replaces the HHSRS.

Asking prices on homes in some seaside towns are bucking the British trend and showing up to double digit growth, according to new research.

Rightmove has revealed the British coastal towns where property asking prices rose the most in the 12 months to May 2026.

Asking prices went up the most in Bootle, Merseyside, rising by 11% to £141,680, the property portal’s data shows.

In family-friendly Crosby, which is less than 20 minutes away by car, prices increased by 9% to £330,900.

On the other side of the River Mersey, asking prices in Wallasey, home to popular seaside destination Marine Point, rose by 7% to £200,753.

The list also featured five Welsh coastal towns, including Penarth, South Glamorgan, where asking prices jumped by 8% to £433,081 in the year to May 2026.

In Llantwit Major, South Glamorgan, asking prices rose by 8% to £340,033.

Asking prices rose by 7% in Llanelli, in Carmarthenshire (to £201,570), and Bangor, in Gwynedd (£220,622). They increased by 6% in Porthcawl, South Glamorgan, to £359,412.

Barrow-in-Furness, Cumbria, saw asking prices rise by 6% in the year to May 2026 to £185,169.

One Scottish town made the top 10 list – Helensburgh in Dunbartonshire recorded average asking price growth of 6% to £247,953.

Mary-Lou Press, president of trade body NAEA Propertymark (National Association of Estate Agents), said: “Many of the fastest-growing seaside markets remain relatively affordable, especially in parts of the North West and Wales. For many buyers, these areas can offer a balance of lifestyle, space and value.

“We’re continuing to see demand driven by flexible working and buyers reassessing where they want to live, but consumers should look beyond headline price growth and also consider factors such as transport links, local jobs, flood risk and ongoing housing costs.”

Source: Rightmove, analysis of more than 100 coastal towns, comparing year-on-year change in May 2026

The cheapest seaside towns to buy a home

Rightmove also analysed the 10 overall cheapest seaside towns to buy a home, with asking prices starting from just £120,000, well below the UK average.

All of the hotspots are based in the north of England or Scotland, including Peterlee in County Durham where the average asking price is £120,657.

Asking prices in the port town of Grimsby, Lincolnshire, are just £133,706 on average.

Head a couple of hundred miles north and you’ll find Ashington, where the average property asking price is £133,775.

Bootle, despite being a town where house prices have risen the most in the last year, is still one of the cheapest places to buy a home on the coast (£141,680).

Blackpool and Fleetwood, both in Lancashire, also featured in the top 10 cheapest seaside hotspots. The average asking prices are well below the UK average house price, at £142,277 and £147,910, respectively.

Seaham, County Durham (£157,994) and Ayr, Ayrshire, Scotland (£157,754) also made the top 10 list.

Source: Rightmove, analysis of more than 100 coastal towns, comparing year-on-year change in May 2026

The most expensive seaside towns to buy a home

The 10 most expensive coastal towns to buy a home are all found in the south of England.

Topping the list is Sandbanks, in Poole. The average property asking price there is £1,119,945, according to Rightmove.

Canford Cliffs, less than two miles up the coast, is the second most expensive place to buy a home near the sea (£1,045,533).

Lymington, Hampshire, also made it on to the list of most expensive coastal spots. Buyers here are looking at an average asking price of £545,926, well above the UK average.

Barton on Sea, in Hampshire (average asking price of £496,143), Lyme Regis, in Dorset (£474,417), and St. Ives, in Cornwall (£461,959), are also on the pricier end of the spectrum.

Source: Rightmove, analysis of more than 100 coastal towns, comparing year-on-year change in May 2026

Having an offer accepted on a property should clear the path to moving into a new home – but most sales collapse after buyers and sellers have already paid out thousands in costs, according to new research.

More than half of house moves (58%) fall through after an offer has been accepted, costing buyers and sellers an estimated £2,830 in direct costs such as legal fees, surveys and mortgage costs.

One in six transactions collapse after four months and one in 10 falls through after five months or more. Sometimes it is because vital information about the true condition of the property is not disclosed upfront. Other times affordability issues arise late into the process putting the house price out of reach.

With around 1.2 million residential transactions taking place each year, the total cost could be as high as £2 billion a year in wasted time and fees as people try to buy a house or sell their home.

The findings from the Open Property Data Association (OPDA), based on a survey of 5,000 recent home movers, highlight deep-rooted problems with the home‑buying process.

The data comes at a time when the economy and housing market are already under strain. Higher interest rates, tighter affordability, and longer transaction times have increased the risk of deals collapsing before completion, leaving families financially stretched and emotionally drained.

When asked how they were affected by a collapsed sale or purchase 43% cited emotional stress as the biggest impact. More than four in 10 people (41%) said their plans were significantly delayed.

The impact was felt most acutely by older home movers. Among those aged 55 and over, almost six in ten (59%) reported high levels of emotional stress.

Maria Harris, chair of the OPDA, said: “These figures lay bare a housing market that is failing consumers at every stage. Far too many transactions collapse because crucial information only comes to light weeks or even months after an offer is made. By then, buyers and sellers have already invested significant time, money and emotional energy.”

How to avoid a property chain collapsing

Harris is calling for upfront, standardised property data through digital property packs to be available to all buyers to avoid any hidden surprises that could jeopardise a home buying chain.

Phil Spencer, property expert and founder of property advice website Move iQ, added: “For buyers and sellers, these fall‑throughs often mean months of uncertainty, money lost on fees that can’t be recovered, and plans put on hold. Much of that pain could be avoided if people were given clear, reliable property information upfront.

“When buyers know what they’re committing to from the start, they can proceed with confidence, avoid nasty surprises later on, and reduce the risk of deals collapsing after so much has already been invested.”

While buyers are waiting for upfront digital property documents to become mainstream, these are the issues Ian Futcher, financial planner at Quilter warns to be aware of in the current market that could jeopardise a sale – and how to prepare for them.

1. Get an agreement in principle early

The two most common causes of chains collapsing are affordability issues – where buyers either fail to secure a mortgage or see offers revised as rates change – and survey results uncovering problems that lead to renegotiation or withdrawal.

In the current environment, Futcher said mortgage dynamics are playing a bigger role. “As rates have shifted more quickly in the UK than in some other markets, buyers can find themselves reassessing what they can afford midway through a transaction, which increases the risk of deals falling apart,” he pointed out.

“Securing a mortgage agreement in principle early in the process can provide greater certainty on borrowing capacity,” Futcher said.

2. Use a good mortgage broker

Working closely with a broker or adviser helps ensure buyers are matched with suitable products from the outset and give flexibility should cheaper deals become available in the run up to completion. Seek recommendations from friends and family who’ve had positive experiences, or use a free matchmaking service like VoucherFor or Unbiased to find a vetted mortgage broker.

3. Keep transactions moving

Futcher said: “Delays often create the conditions for second thoughts or changing circumstances, so maintaining regular communication with lenders, solicitors and agents can help keep momentum and avoid surprises emerging late in the process.”

4. Factor in changes in mortgage rates

Buyers who have factored in potential rate movements and ensured they have sufficient financial headroom are better placed to proceed, even if market conditions shift slightly before completion, said Futcher.

“In a market where uncertainty remains elevated, taking advice and stress-testing affordability upfront can make the difference between a successful completion and a collapsed chain,” he said.

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The government has laid out its design of the so-called mansion tax, which would see owners of homes in England worth £2 million or more slapped with an extra charge from April 2028.

Chancellor Rachel Reeves announced plans for the High Value Council Tax Surcharge (HVCTS) in her 2025 Autumn Budget, claiming it would make the council tax system fairer.

The Treasury proposals are now being consulted on.

Housing Secretary Steve Reed highlighted that under the current council tax system, residents of a band D property in Darlington or Blackpool worth around £400,000 today pay £2,400 to £2,600 annually.

In comparison, those living in a mansion in Mayfair valued at £10 million in Band H are charged around £2,100 per year.

He said: “Previous governments have known how unjust this is, but failed to act. Through the HVCTS, those who own the most valuable properties in the country will pay their fair share.”

The Treasury estimates that fewer than 1% of residential properties in England will attract the HVCTS, which will be paid alongside council tax bills.

Revenue raised through the HVCTS will be used to support funding for local government services.

How high value homes will be valued for the mansion tax

The Valuation Office (VO) will be conducting a targeted valuation exercise to identify properties in scope by using professional valuers and using industry standard automated valuation models that assess sales data and property attributes.

It will identify homes worth more than £2 million as of April 2026 and adjust for differences between properties include the sale price, property type, size, age, number of rooms and parking.

High value homes will then be placed in four bands.

These start at £2,500 for a property valued in the lowest £2 million to £2.5 million band and go up to £7,500 for a property valued in the highest band of £5 million or more, all uprated by CPI inflation each year.

Revaluations will be conducted by the VO every five years.

Properties built after implementation of the HVCTS but before the next scheduled revaluation will be valued and banded either on completion or from the day they are occupied.

Homes that have been significantly improved or changed after the implementation date, for example by adding a large extension, will be revalued and banded at the sooner of either the next revaluation or sale of the property, the consultation said.

Who will pay the mansion tax?

It will be the owners of a property rather than the occupiers who pay the HVCTS. This means a landlord rather than a tenant would pay the charge if a home worth more than £2 million was being rented out.

This also means leaseholders will be liable for the mansion tax in a high-value home.

Where a property is held in trust for a child, trustees will be liable.

Mansion tax exemptions

There will be some exemptions to the mansion tax such as for individuals who bought or inherited their home but who now have lower income, or those who experience a temporary change in circumstances such as job loss or ill health.

The government said it will make a deferral scheme available which permits payment of HVCTS to be delayed until a property is sold, where individuals meet specific eligibility criteria.

This will be targeted at those on lower incomes – with an income threshold of £35,000 – and not for second homes or to companies that own property.

Deferral will also be available in certain circumstances where the property is the main home of someone who is disabled or severely mentally impaired.

Mansion tax discounts

The government has proposed offering a discount or exemption to charities and also to properties such as halls of residences, property owned by the Ministry of Defence and by organisations predominantly for the accommodation of those seeking refuge from domestic violence.

There may also be discounts for people who own a property tied to their employment.

The consultation said: “In some sectors, particularly agriculture, business owners may need to live on the site where their business operates for practical reasons. For example, a farmer may need to own and live in a home located on their farm.

“Outside agriculture, it is less common for ownership and occupation to coincide. For example, accommodation used to house members of a religious institution is typically owned by the institution rather than those occupying it.”

When would you need to pay the mansion tax?

The HVCTS will be collected by councils at the same time as council tax.

Once the valuations are ready, local authorities will identify owners and send the first bills in March 2028.

You will be able to contact your local authority for information on deferral and discounts in advance of the first bill or at any time if circumstances change.

Can you challenge the mansion tax?

Homeowners will be able to challenge valuations, similar to how you can appeal council tax charges.

If you think you have been incorrectly billed or banded, you will be able to complain to the VO or the local authority.

Homeowners will be given longer than usual to challenge the new  High Value Council Tax Surcharge (HVCTS).

The government is providing an initial eight month period to challenge banding rather than the typical six month period for mainstream council tax.

As with council tax, where an individual submits a challenge or appeal they will be required to continue paying HVCTS.

Any overpayments will be refunded or liabilities adjusted if necessary.

Sarah Coles, head of personal finance at AJ Bell, said: “There will be plenty of people breaking out the world’s smallest violins for those in expensive homes. However, it could cause problems for people who are asset rich but cash poor. They may decide to bring forward any downsizing plans, and then struggle to sell before the charge kicks in.”

Large parts of the Renters’ Rights Act have come into force and while it should improve outcomes for renters, critics argue it’s made the task of being a landlord tougher.

One of the Labour government’s flagship policies, the bill looks to shift what some perceive as the power imbalance between tenants and landlords.

But its introduction comes after years of the buy-to-let market being clobbered, with increases to the second home stamp duty surcharge and tax reliefs on mortgage interest slashed.

The changes contained within the Renters’ Rights Act, which applies primarily to the private rental market, are being phased in from 2026 onwards. A large number of changes came into effect in May 2026.

‘No fault’ evictions have been banned, renters can now ask to live with a pet and landlords cannot reasonably refuse and fixed-term tenancies have been replaced with rolling contracts.

The act will look to extend Awaab’s Law to private rentals too, although this hasn’t come into effect yet. The law, already in place for the social rented sector, means landlords have to investigate and fix serious damp mould and emergency hazards within a fixed timeframe.

While the Renters’ Rights Act will arguably improve lives for tenants, landlords already working in a challenging market need to arm themselves with as much protection as possible.

Here are four key things landlords should consider doing now.

Rent guarantee insurance

With the Renters’ Rights Act abolishing Section 21 (of the 1988 Housing Act) ‘no fault’ evictions, landlords now have to rely on section 8 to take over possession of a property.

Under Section 8, tenants can be evicted on anti-social behaviour grounds or for owing at least three months’ rent.

However, this could lead to extended periods where landlords are left significantly out of pocket and facing legal costs if a tenant disputes a case and it goes to court.

Rent guarantee insurance can protect you in this situation, covering for missed rental payments and sometimes legal costs.

Rent guarantee insurance usually pays out for between six to 12 months. How much you pay will vary depending on the type, size and location of the property, your level of cover, the excess and the insurer’s assessment on how likely it is a tenant will default on payments.

You could also ask a prospective tenant to agree to have a guarantor, who can cover any rent should the tenant be unable to pay.

Chris Norris, chief policy officer at trade body the National Residential Landlords Association (NRLA), said: “For landlords who rely on rental income to cover essential costs, a guarantor or rent guarantee insurance is a sensible option.

“With Section 8 possession routes likely to be slower and costlier, cover that pays out for unpaid rent and the legal costs of regaining possession can be the difference between a manageable setback and a serious financial hit.”

Tighten referencing and affordability checks

With fixed-term assured tenancies ditched through the Renters’ Rights Act and, alongside the banning of Section 21 evictions, it’s incumbent on landlords to do thorough affordability and referencing checks on tenants to ensure they can keep up with payments and won’t cause any problems.

As a landlord, you can carry out referencing and affordability checks yourself.

You can also get the help of a letting agent or professional tenant referencing company, just bear in mind you’ll need to pay for this.

For example, a professional referencing company can charge anywhere between £15 and £40 per tenant.

If you carry the checks out yourself, you could hold an initial phone or video call with the tenant to gauge their personality and also find out other useful information about them like what type of employment they’re in and if they smoke.

You could carry out a credit check on them, review their bank statements and ask their employer and previous landlord for a reference as well.

Sim Sekhon, group chief executive officer at Propoly, a platform for lettings agents, said: “Landlords and letting agents will need to place far greater focus on upfront due diligence, particularly around affordability, income verification, previous tenancy conduct and overall risk profiling before a tenancy begins.”

Do note, under the Renters’ Rights Act, it is now illegal for landlords to refuse to rent a property to a tenant receiving benefits or with children aged under 18.

Consider adding a pet policy to your tenancy agreement

The Renters’ Rights Act sets out that landlords cannot unreasonably refuse a tenant’s request for a pet. This part of the act came into effect in May 2026.

Therefore, it could be worth adding a pet policy to your tenancy agreement to avoid any disputes down the line.

Sián Hemming-Metcalfe, operations director at Property Inspect, a website for property managers, surveyors and landlords to manage property reports and inspections, said: “A well-drafted pet policy can help set expectations around issues such as cleaning responsibilities, flea treatment, nuisance behaviour and how any pet-related damage will be managed.”

As well as adding a pet policy to your tenancy agreement, it may be worth adding pet damage to your existing landlord insurance which would cover you in case of any accidents.

Hemming-Metcalfe added it could be worth writing out an inventory and agreeing on it with a tenant.

This will establish the condition of the property, including contents, general cleanliness, walls, floors and appliances, when they moved in and could help if a tenant disputes whether their pet has caused any damage down the line.

Start keeping detailed records and stay on top of compliance and property standards

Section 8 notices rely on strong evidence against a tenant, so it’s important landlords hold detailed records of all aspects of a tenancy which they can use to prop up a case that goes to court.

Hemming-Metcalfe said: “Maintain thorough inspection reports with photographic evidence, accurate maintenance records, rent payment histories and clear logs of tenant communication throughout the tenancy. Evidence of issues such as antisocial behaviour complaints or unresolved repair access can also become critical if matters reach court.”

Landlords must also ensure they’re keeping on top of property standards and compliance.

This includes ensuring Energy Performance Certificates (EPCs), gas safety certificates and electrical reports are valid and up to date and deposits are correctly protected through a tenancy deposit scheme. Repair issues will also need to be addressed promptly, with clear records maintained throughout.

Hemming-Metcalfe added: “Beyond avoiding fines, compliance will increasingly form part of a landlord’s ability to successfully pursue possession claims. In practice, maintaining accurate property records, inspection evidence and audit trails will become just as important as the physical management of the property itself.”

Are you a landlord affected by the Renters’ Rights Act and other recent legislative changes? If you'd like to share your story, get in touch by emailing editor@moneyweek.com.

England’s friendliest neighbourhoods have been revealed, and the winner might surprise you.

Estate agents John D Wood and Co. ranked areas across the country based on factors such as access to green spaces, rates of anti-social behaviour and prevalence of community events.

Sutton, in south-west London, came out on top, with the borough scoring highly for its moderate levels of anti-social behaviour with just 15.6 reports per 1,000 residents.

The borough also has high levels of home ownership – around 65% of properties are owned outright or have mortgages on them. The average house price is £457,497, according to the latest Land Registry data.

It also has a bundle of social amenities such as restaurants and pubs for residents to choose from, with 10.36 for every 10,000 residents, and plenty of public gardens to explore.

The borough has also notched up seven council award wins for community initiatives.

Where else are the friendliest neighbourhoods in England?

Behind Sutton in south-west London, Chester, Cheshire, came second in the John D Wood and Co. rankings. It scored strongly for safety – the historic city in North West England records just 7.7 reports of anti-social behaviour per 1,000 residents.

Chester also benefits from high homeownership levels, with 69.4% of properties owned outright or with a mortgage on them.

There’s also an abundance of cafes, pubs and community spaces, while residents have access to an average of 4.84 public parks, gardens or paying fields within a 1,000 metre radius.

The average house price in Chester West and Cheshire is £267,668, according to the Land Registry.

Liverpool, Merseyside, came third in the rankings. The city records 13.5 anti-social behaviour reports per 1,000 residents.

John D Wood and Co. also said Google searches for community events among residents have increased by 33% in the last year, suggesting a growing interest in local activities and community spirit.

The average property price in Liverpool is just £177,378, based on Land Registry data, well below the UK average.

Source: John D Wood and Co. Average house price data is based on the latest Land Registry data, sourced by MoneyWeek.

What is the friendliest London borough?

Sutton was also named as the friendliest neighbourhood in London, as well as England.

Bromley, in south-east London, ranked second.

The borough, once home to rock legend David Bowie, records a homeownership rate of 69.04% while residents have a plethora of green spaces and high streets packed with shops to choose from. The average home there will cost you £515,200, according to the Land Registry.

Merton, in the south-west of the capital, came third in John D Wood and Co.’s London rankings. Home to areas like Wimbledon, the borough provides residents with plenty of parks, gardens and public fields to choose from, combined with decent homeownership rates and moderate levels of anti-social behaviour.

The average house price in Merton costs £604,042, says the Land Registry.

Perhaps unsurprisingly, Kensington and Chelsea also featured highly in the rankings, recording 11.42 cafes, pubs and community spaces per 10,000 residents.

Featuring iconic areas such as Notting Hill and Chelsea and no dearth of restaurants and boutique shops, the average house price is a steep £1,225,499, based on Land Registry data.

Hammersmith and Fulham also featured high in the London rankings, offering residents a mix of classy high streets and plenty of green spaces. The average house price is £727,665 says the Land Registry.

Almost half of UK homes listed in the past three years didn’t sell, with many homeowners failing to price them accurately, new research suggests.

A survey of 2,064 people by property portal Zoopla found 44% of homeowners listed their homes but couldn’t sell, of which a third (34%) said their property asking price was too high despite believing it was fairly valued beforehand.

Meanwhile, 53% of respondents who did sell in the last three years said they had to cut their asking price to attract a buyer.

Separate data from Zoopla suggests the average home sold for 3.5% below asking price in the first three months of 2026 – equivalent to £18,800 less – as sellers repriced their homes to draw in offers.

Richard Donnell, executive director at Zoopla, said: “Almost half of homes listed never sell. That isn't down to luck or the market, it comes down to a few decisions, starting with understanding what your home is actually worth today.

“The average homeowner selling in 2025 had been in their home for nine years, meaning many owners are out of touch with what their home may be worth.”

We reveal what house features homebuyers look for most in another piece.

Sellers feeling the property pressure

The survey by Zoopla found sellers are inaccurately valuing their homes because they’re rushing the process.

More than six in 10 (61%) of those who didn’t sell their homes in the last three years viewed other properties before getting a valuation of their own home, while nearly a third (32%) put in an offer on another home before knowing how much theirs was worth.

As a result, more than one in five (21%) said their asking price was influenced by what they needed for their next property rather than the true market value of their existing home.

Younger sellers keen to trade up were found to be more likely to try and test the market and get more for their home than it’s actually worth too.

Just over half (52%) of sellers under 35 managed to sell their home in the last three years, versus 63% of those aged 65 and over.

For under 35s, the main reason for selling was scaling up to a larger home (44%) while for sellers aged 65 and older the primary motivation was downsizing (34%).

This pressure to upsize among younger sellers showed in asking prices, with a fifth (20%) under 35 saying they had overpriced a property in the last three years.

We look at whether now is a good time to sell in another article.

How to price your home accurately to try and sell it quicker

Accurately valuing your home will ensure buyers are more likely to put in an offer rather than ignoring the property during their research.

A number of websites and property portals, such as Zoopla and Rightmove, have online valuation tools which are free to use.

Zoopla bases its estimates on data from HM Land Registry and Registers of Scotland, official survey records, live for sale and to rent property listings and Energy Performance Certificates (EPC).

Rightmove’s valuation tool also pools its estimates from HM Land Registry and Registers of Scotland data, as well as listings live on its website.

The Land Registry website tells you how much houses have sold for in your area.

Meanwhile, you could get a property valuation done by an estate agent who has knowledge of the local market, and many will do it for free.

When it comes to setting an asking price, it might be tempting to test the market with an inflated price, but this will likely delay the selling process.

Polly Ogden Duffy, managing director at estate agent John D Wood and Co., said: “Sellers often worry about underselling, but in reality it’s far easier to oversell a property than undersell it. If a home is priced too high, buyers will simply move on – and more often than not, it will end up needing a reduction later.”

Pay attention to buyer signals as well. If viewings aren’t converting to solid offers, it could be because you’ve overvalued your property, your listing features poor pictures or your home gives off a poor first impression.

Mark Manning, managing director of independent estate agent Northern Estate Agencies Group, said: “Think carefully about how your property is presented both online and at the kerb – first impressions really do still matter – and be prepared to adapt your strategy if your initial approach hasn’t landed. The sellers who struggle are almost always the ones who simply wait and hope something changes.”

Landlords are only just getting used to the Renters’ Rights Act but there are already calls for more reforms on rent.

A raft of new rental regulations were introduced earlier this month including the end of ‘no fault’ evictions and a shift to rolling tenancies.

The aim is to give tenants more rights and security but it adds to the extra administrative burden faced by landlords running a buy-to-let portfolio.

Property investors already face extra stamp duty charges and restrictions on mortgage interest relief, all dampening the profits from buy-to-let.

But now a think tank has called for rent caps for tenants.

The Treasury recently ruled out rent caps but the Institute for Public Policy Research (IPPR) has released analysis this week calling for a "double lock" rent cap.

The think tank recommends the government stabilises rents, with annual rent increases limited by a “double lock” linked to whichever is lower: inflation or wage growth.

What is a "double lock" rent cap?

The IPPR argues that recent global shocks – from inflation to rising interest rates – have been passed from landlords directly onto renters, who have little ability to absorb or avoid sudden rent increases.

Its report suggests more than 45% of private renters live in unaffordable housing – an increase of over 250,000 households since 2023/24.

This is defined as households spending 30% or more of their post-tax, post-benefits income on rent.

Without intervention, it warns this is going to grow to 2.5 million by the end of the current parliament – an increase of 340,000 since 2023/24.

The think tank recommends the government stabilises rents, with annual rent increases limited by a double lock linked to whichever is lower – inflation or wage growth.

Its analysis suggests that, had such a system been in place since 2020, rents would be around 7% lower by the end of the decade – saving the average renter around £850 per year in England, and more than £1,700 in London, and reduce the number of households facing unaffordable rents by 140,000 compared to no intervention.

Dr Maya Singer Hobbs, senior research fellow at IPPR, said: “Millions of renters are being pushed to the brink by a housing market that simply isn’t working for them. This is no longer a marginal issue affecting a small group – it is a mainstream cost-of-living crisis hitting working households across the country.

“Without action, things will get worse. The current system leaves renters exposed to global shocks and rising costs they have no power to control.

“Government has taken important steps to strengthen renters’ rights, but it now needs to go further. A fair system of rent caps would rebalance the market, protect households from sharp increases, and ensure that rents grow in line with what people can actually afford.”

Do rent caps work?

Rent caps may sound good to tenants but the risk is that landlords are further deterred from the sector, reducing supply and ultimately pushing up pricing.

The National Residential Landlords Association has previously warned: “Imposing rent controls could mean locking in mandatory annual price rises for tenants. History has also shown it reduces the quality of the rented homes out there, with less cash coming in to be invested in improvements.

“In addition to locking new residents out of cities, it could see landlords quit the market, which in turn would reduce the overall number of homes available to rent.”

The IPPR aims to address these concerns by suggesting the cap should be accompanied by policies such as time-limited exemptions for new-build properties, to make sure more houses continue to be built and rental properties get added to the market.

The Coachman’s House, Dollarbeg, Dollar, Clackmannanshire

A renovated Victorian house built around a courtyard with a garden that includes an all-weather tennis court. 5 bedrooms, 4 bathrooms, kitchen, 5 dressing rooms, 2 reception rooms, home cinema, 2-bedroom cottage, gym with sauna, woodland, 6.6 acres.

Price: £2.25m+ Savills 0131-247 3738.

Haughley Park, Stowmarket, Suffolk

A Grade I-listed Jacobean manor in 240 acres of parkland with gardens that include a croquet lawn and a tennis court. It has ornate fireplaces and a grand, carved wooden staircase. 7 bedrooms, 5 bathrooms, 5 reception rooms, study, offices, 2 kitchens, conservatory, 5-bedroom farmhouse, outbuildings.

Price: £4.25m Knight Frank 01394-334570.

East South Fork Rd, Utah, USA

A house in the Provo Canyon in Utah with a sports building that includes a basketball court, a squash court, a climbing wall and a games room. The house has floor-to-ceiling windows and open fireplaces. 4 bedrooms, 5 bathrooms, split-level open-plan kitchen/living area, home cinema, 2-bedroom guest house, landscaped gardens, 29.6 acres.

Price: $43m Summit Sotheby’s International Realty +1 800 641 1884.

Thistle Hall, Wickham Bishops, Essex

A contemporary property built in a Georgian style with a lake and a synthetic putting green with a bunker and tees in the landscaped gardens. It has an indoor swimming-pool complex, a kitchen with a professional-grade oven, and French doors leading onto a terrace. 5 bedrooms, 5 bathrooms, reception hall, 4 reception rooms, annexe, outbuildings, 25.63 acres.

Price: £5.5m Strutt & Parker 01245-258201.

The Old Vicarage, Bleasby, Nottinghamshire

A restored, Grade II-listed country house set in gardens that contain an all-weather tennis court. The first-class leisure facilities include an indoor heated swimming pool covered by a lantern-glass roof, along with a gym and games area. The house has open fireplaces and an open-plan kitchen and living area. 5 bedrooms, 4 bathrooms, 2 reception rooms, 3-bedroom coach house, stables, paddock, 5.3 acres.

Price: £2.45m Fine & Country 0115-982 2824.

Lancewood, Windlesham, Surrey

A contemporary house set in gardens that include a heated swimming pool and professionally surfaced half-court basketball court. It has floor-to-ceiling windows and a cinema. 5 bedrooms, 5 bathrooms, dining kitchen, reception room, 1-bedroom annexe, 3.68 acres.

Price: £7m+ Strutt & Parker 01344-921985.

Galon Y Mynydd, Coed Y Bronallt, Pontarddulais, Swansea, Glamorgan

A modern house overlooking the River Loughor, with an outdoor, professionally finished football pitch with full-size Fifa-approved goal posts and an indoor swimming-pool complex. The house has stone floors and a state-of-the-art kitchen. 5 bedrooms, 3 dressing rooms, 6 bathrooms, open-plan kitchen/living area, 2 reception rooms, gardens.

Price: £2.5m Country Living Group 01437-616101.

Harmony House, Westham, Wedmore, Somerset

A detached, modern house overlooking landscaped gardens that include an enclosed football pitch and an outbuilding with a gym and a games room. The house has a glazed, 46ft open-plan dining kitchen and living area. 4 bedrooms, 3 bathrooms, open-plan dining kitchen/living area, reception room, cinema, utility, cloakroom, outbuilding with gym and first-floor games room, garage.

Price: £1.79m Knight Frank 01173-171996.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

The number of homes being bought, renovated and then sold in quick time has slumped over the last decade – but there is still money to be made if you know where to buy.

Buying low and selling at a profit is known as house ‘flipping’. The amount of properties ‘flipped’ within 12 months halved between 2016 and 2025 from 21,520 to just 10,570, according to Hamptons.

The property agent put the fall down mostly to a rise in the cost of stamp duty on second homes and sliding house prices in some regions.

As a percentage of total housing transactions, London saw the biggest drop in flips, with 2.1% of all transactions flipped in 2015, but just 0.9% in 2025.

In the East of England, this figure slumped from 2% to 1% over the same period, while in Yorkshire and the Humber, plus the South East, the drop was from 2.6% to 1.8%.

Why is the practice of flipping on the slide though, are there flipping hotspots where gains can still be made and what other options are there for property investors looking to cash in? Here’s everything you need to know.

The flipping hotspots where investors can still turn a profit

When it comes to flipping, only one UK region has bucked the downward trend over the last 10 years, according to Hamptons’ analysis – the North East.

The research shows that gross profits on flipped homes there, after deducting stamp duty costs, were up between 2015 and 2025 by 27%, from £13,450 to £17,080.

Across the region, the rise in profits was sharpest in Hartlepool, increasing by 148% between 2015 and 2025.

Post-stamp duty land tax (SDLT) profits also surged by 141% in Redcar and Cleveland, 111% in South Tyneside and 70% in Middlesbrough.

Dr Andrew Threadgold, general manager of property development firm Cornerplot Properties, based in North East England, echoed Hamptons' findings, highlighting Middlesbrough as one area which has been a flipping hotspot for a number of years. He also said South Wales had proved profitable, in particular areas such as the Valleys and Pembrokeshire where he said house prices have surged.

Credit: Hamptons and Land Registry

Why are fewer properties being flipped?

Flipping homes involves buying a property and selling it on quickly for a profit.

Typically, investors buy run-down properties then renovate them before selling up. Some investors simply buy homes at a low price then sell them immediately for profit.

Flipping was once seen as a risk worth taking. Hamptons saw the trend peak in 2007, when 3.7% of all homes sold in England and Wales (52,950 properties) had been purchased in the last 12 months.

But the introduction of the 3% stamp duty surcharge on second homes in 2016 and the increase in this surcharge to 5% in October 2024 has eaten into profits.

According to Hamptons’ research, gross profits – the difference between the original price and resale price of a home, after deducting stamp duty – have fallen significantly since 2016.

In 2015, just one year before the second home surcharge was introduced by then chancellor George Osborne, the average post-SDLT gross profit on a flipped property was £36,500. By 2025, this had fallen to £16,390.

This is before refurbishment costs are factored in, suggesting that only a minority of flipped properties are now delivering a net profit, Hamptons said.

Aneisha Beveridge, head of research at Hamptons, said “flipping is no longer the profitable venture it once was” due to the introduction of the second home stamp duty surcharge.

She added that falling house prices across southern England and the rising cost of materials and labour since the pandemic had further dented investors’ profits.

“Even before factoring in stamp duty, refurbishment budgets now stretch much further than they once did, pushing profit margins to their thinnest levels in over a decade,” Beveridge explained.

‘Perfect storm’ for developers flipping homes

Threadgold said he was still managing to flip homes in the North East, Warwickshire and South Wales, but the market was under significant pressure.

He said the introduction of the stamp duty surcharge, as well as a host of other factors had created the “perfect storm” for developers.

Threadgold said it had been harder to get hold of skilled workers due to extra red tape post-Brexit while the rise in the National Minimum Wage has added to labour costs.

In particular, he highlighted significant rises in material costs, on items such as timber and plaster, during and since the coronavirus pandemic which have put major pressure on developers.

“Every little thing that goes into building or renovating a property has risen dramatically in the last four or five years. It's off the scale how much stuff has gone up in price,” he said.

He added that an increase in solicitor fees, as well as higher interest rates on bridging loans, used by many developers, was contributing to surging costs.

What is the impact on the housing market?

Kate Faulkner, property market expert, said because the proportion of housing transactions made up of flipped homes was so small in 2016 (2.4%), any falls since then wouldn’t have a major impact on the broader housing market.

In fact, she said it left more space for homebuyers to renovate properties themselves rather than buying from developers who would commission the work then add a premium on top.

However, she said less developers flipping homes could make it harder for sellers to shift homes with a smaller pool of buyers in the market.

How else can you make a profit on property?

If flipping isn’t for you, there are other options if you’re still keen on turning a buck in the property market. According to experts, there are two main options available.

Buy-to-let

Buy-to-let landlords may be facing a higher tax burden and mortgage rates, but there is still scope to turn a profit, said Sam Hadfield, managing director at property investment company BuyAssociation.

He pointed to rising rents as one reason why landlords can still make money across the sector. Average UK monthly private rents increased by 3.4% to £1,377 in the 12 months to March 2026, according to the latest figures from the Office for National Statistics (ONS).

“There is probably a bit of a cultural shift that's been happening over the last 10 years in the UK, where I believe that our younger working population are very happy to rent,” Hadfield said.

Hadfield said there was strong potential for BTL landlords buying property in regional spots such as Birmingham and Manchester, where populations are growing and people are “very happy” to rent.

He explained: “If you can develop that house, it's probably still sensible to do that and add some value to it, but I would say flipping it at the end is not the strategy. It would be to tenant it and hold it, [and] build your portfolio.”

Speak to your local council

Another option is to explore whether you can lease your property to the local council, said Faulkner.

This can lead to fewer void periods while providing social housing for those that need it within your community. Some councils take on the role of letting agent, carrying out day-to-day communication with the tenant which means less work for you.

Do note though, leasing a property to your council may mean you have less of a say over rent levels or choosing which tenants to move.

Waltham Forest Council, in North-East London, for example, offers private landlords leasing their properties up to £10,000 in cash incentives and covers the cost of annual insurance against rent loss and tenant damage.

Councils have been given new powers to fine landlords up to £7,000 if they fail to fix poor housing conditions in their properties in the latest stage of the government’s rental reforms.

Large parts of the government’s Renters’ Rights Act have come into force, including a ban on so-called “no-fault” evictions, an automatic switch to rolling contracts and limits on how often rents can be increased.

Landlords had until 31 May to hand over the government’s Renters’ Rights Act Information Sheet 2026 document, detailing the changes to tenants or risk a £7,000 fine.

In the latest change as of 22 June, councils can now take stronger action where landlords fail to fix problems, alongside existing enforcement powers.

Fines of up to £7,000 can be issued if landlords refuse to fix poor conditions.

The fine will apply to 21 types of hazards that are found to be serious - the most dangerous level - which include freezing conditions, faulty electrics, fire hazards, structural issues and unsafe layouts.

The new penalty sits alongside existing powers councils can use to tackle unsafe homes that put tenants at risk. These include forcing repairs, carrying out emergency works and recovering costs from landlords who fail to act.

The landmark reforms have raised fears already squeezed landlords, particularly those on a small-scale, have been given more reason to abandon the market and sell up.

Landlords can be fined up to £7,000 for failure to comply.

But these aren’t the only compliance failures that could result in a fine.

What other rules will landlords need to follow?

Beyond providing the tenancy information sheet, there are other rules that landlords have to follow or face a fine for breaching.

Landlords can’t ask for or accept rent from a tenant before a tenancy agreement has been signed between both parties.

Landlords also cannot stop someone from viewing or renting a property just because they are on benefits or have children.

Rental properties also have to be advertised with asking prices, while landlords are banned from encouraging people to bid higher than this advertised price.

There will also eventually be a register that landlords need to sign up to or they will face a fine. A date for this hasn’t been set yet.

Councils will be responsible for issuing fines and there could be higher charges for repeated failures and landlords could even be banned for serious breaches.

Landlords ignoring the rules can be reported by their tenants or found through council inspections.

There are more changes coming as well as part of the wider rental reforms.

By the end of 2028, it will be mandatory for landlords to be members of a new Landlord Ombudsman and to be on the private rented sector (PRS) database before they can even list a property for rent.

Failure to register to the new PRS Database and ombudsman could lead to an up to £7,000 civil fine, or up to £40,000 repeat fine.

Additionally, the minimum requirement for Energy Performance Certificates (EPCs) is due to rise from E to C in October 2030, while the full Decent Homes Standard will be introduced in 2035.

Under the standard, properties must be free from hazards, in a reasonable state of repair and with reasonable services such as a kitchen and bathroom and free from damp or mould.

Landlords can be fined up to £30,000 if their rental properties are found to be below the Decent Homes Standard.

If you are renting your property through a lettings agent, it is worth checking with them if you are compliant.

Lettings agency Kinleigh Folkard & Hayward suggests keeping clear records of agreements, inspections and communications, adding: “A well-organised system can make compliance easier and support positive tenant interactions, including maintenance requests. Landlords may find it beneficial to work with partner agents who offer online software to help with record keeping and to manage the additional requirements.”

Rob Norton, UK director at property software brand PlanRadar, said: “As the new rules come into force, landlords and property managers will face significantly greater pressure to evidence activity across their portfolios in real time. Every inspection, repair and tenant interaction will need to be accurately recorded and easily accessible.

“However, many are still relying on disconnected systems to manage these processes, creating gaps in visibility and increasing the risk of disputes or delays.

“As a result, we’re likely to see an acceleration in the shift towards digital tools that provide a clear audit trail and a single source of truth across assets. In an increasingly regulated environment, that level of oversight is becoming essential.”

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

Period properties might come with character and charm, but insuring one could cost you hundreds of pounds more a year than a new-build, new research suggests.

Analysis from price comparison site Compare the Market shows owners of period homes – properties built before 1911 – pay £376 for annual combined contents and buildings cover compared to £179 for those living in homes built from 2000 and later.

Homes built in the Stuart period are the most expensive to insure, with the average annual premium setting homeowners back £545.

Georgian properties are the second most expensive to insure, with the average combined policy costing £446, Compare the Market found.

Owners of Tudor properties have to pay £418 on average, while those in a Victorian home are looking at an average of £252. Premiums for homes constructed between 1911 and 1999 typically cost £200.

Despite the differences in price, the cost of insuring period homes has fallen over the last year, Compare the Market said.

The average cost of insuring period homes was 15% higher in 2025 (£442), according to its data.

Credit: Compare the Market

Why does it cost more to insure older homes?

Insurance on older properties costs more than new-builds because there is more risk involved for the insurer.

The older a property, the more likely it is that plumbing, electrics and external features such as roofs are outdated.

For example, a loose tile on your roof could allow rainwater in while a thatched roof poses a fire risk.

Repair costs for older properties are also typically greater than newer ones because repairs often demand specialist materials.

If your property is listed, you may also be restricted on what you can change or replace in a home, which can bump up the cost of a premium.

Nathan Blackler, home insurance expert for Go.Compare, said: “Higher premiums on older homes will likely be down to older homes being more vulnerable to issues such as fire damage, poor drainage and corroded pipework, and repairing or rebuilding traditional features can be costly, all of which can push premiums up.”

How to cut insurance costs on older homes

If you live in a period home, there are practical steps you can take to reduce your premium.

One is improving security through locks, burglar alarms and security lighting, says Blackler.

Another is regular maintenance of your property to ensure smaller problems don’t turn into bigger ones, says Amy Rootham, home insurance expert at Compare the Market.

“Regularly clearing gutters, checking for damp, and addressing minor repairs early could reduce the risk of larger, more expensive claims,” she says.

“Similarly, installing adequate fire safety measures, such as smoke alarms, is essential, especially for properties with features like thatched roofs."

Make sure you’re shopping around for the best deal as well, by using price comparison websites like Go.Compare, Compare the Market and MoneySuperMarket.

What are the different types of home insurance?

There are two types of home insurance – contents and buildings. You can also buy combined contents and building insurance policies.

Buildings insurance covers the cost of repairing any damage to the structure of your property, including any walls, floors, ceilings or roof. It also covers you if permanent fixtures such as your bathroom, kitchen, garage or shed are damaged.

Buildings insurance generally covers you for damage caused by fires, floods, storm or wind damage and theft or vandalism.

Contents insurance says what it does on the tin – it covers you in case the contents of your home, such as furniture, electronics or jewellery, are damaged or stolen.

Not all home insurance policies cover the same things though, so it’s worth delving into the terms and conditions of each deal before buying one.

Most home insurance policies also come with an “excess” – the amount you have to pay towards a claim.

Increasing your excess will see your policy go down, but means you’ll have to fork out more if you have to make a claim.

Buy-to-let (BTL) repossessions are on the rise and experts are warning landlords face “tough times” ahead.

There were 770 BTL mortgage possessions in the last three months of 2025, up 10% from 700 in the same period in 2024, according to the latest data from trade body UK Finance.

Meanwhile, landlords taking out a BTL mortgage in mid-April compared to the start of March face higher repayments of roughly £1,300 more a year, based on analysis by data firm Moneyfactscompare.

This is based on borrowing £250,000 over 25 years at 5.45% versus 4.66% at the start of March. Mortgage rates have risen after conflict in the Middle East broke out on 28 February, amid expectations inflation could surge.

Rachel Springall, finance expert at Moneyfactscompare, said: “Tough times are ahead for landlords as the profitability of buy-to-let has been damaged due to tighter legislation, and with rising running costs eating into profit margins, it is squeezing them from all sides.

She added: “It is worrying to think that landlords could be failing to keep up with mortgage repayments.

“In the months ahead, the cost of living is predicted to worsen, and this will be magnified if landlords are due to come off a cheap fixed rate, because mortgage rates have been rising.”

We look at which is best out of a buy-to-let or shares in another piece.

Are rents going up or down?

Monthly rents outside Greater London stayed at £1,370 in Q4 2025 and the first three months of 2026, separate data published by property portal Rightmove shows.

It is the first time there has been no rise over this time period since 2017, although average rents outside of the capital in Q1 2026 were still 1.6% higher than Q1 2025.

Rightmove put the figures down to lower tenant demand and a greater supply of rentals on the market, with the total number of homes available to rent across Great Britain up 3% from the same time in 2025.

The property website also said slowing wage growth and higher than 2% inflation have squeezed people’s budgets and what they can afford to pay for rent.

In the first three months of 2026, 26% of rental listings saw a price reduction, the highest proportion at this time of year since 2012.

Colleen Babcock, property expert at Rightmove, said: “With more homes available to rent and less competition between tenants, landlords are needing to position rents correctly for the current market to secure a tenant.”

Are there reasons for optimism in the buy-to-let market?

There are some signs of positivity, with the number of newly-listed rentals coming onto the market in March 2026 6% lower than the same month in 2025, according to Rightmove.

UK Finance’s latest figures also show an 18% rise in the number of new BTL loans taken out in the last three months of 2025 compared to the same period in 2024.

The trade body’s data also reveals the average rental yield rose to 7.18% in Q4 2025, up from 6.99% in the same quarter in 2024.

However, this data does not reflect the impact of the conflict in the Middle East.

What landlords can do now

Landlords facing a tricky market can take steps to ease the strain and boost their margins, says Nick Mendes, mortgage technical manager at broker John Charcol.

Where a rise in rent is unavoidable, it “tends to land better when there is some visible value alongside it, whether that is improving storage, replacing tired fittings, being quicker on repairs or making the property feel better looked after,” says Mendes.

Reconsider asking for the highest possible amount of rent as well, as a tenant paying slightly less could still prove more profitable over the long-term.

Mendes says: “A reliable tenant on a slightly lower figure can still be the better outcome once void periods, re-letting costs and disruption are factored in.”

Meanwhile, landlords can spread equity around their portfolio to manage costs and borrowing. For example, by remortgaging a home with a small loan left on it, then using the equity to pay down a larger mortgage on another property, or by covering repair costs on another property.

It is worth reviewing costs more generally as well to see if you can save money, says Mendes, including home insurance and energy bills.

Separately, landlords will need to prepare for new Renters’ Rights Act rules coming into force from 1 May.

Derwent London (LSE: DLN) is the largest office-focused London property real estate investment trust (REIT) with 61 principal properties distributed across what the company calls 13 central London “villages”. These include 88-94 Tottenham Court Road in Fitzrovia and 50 Oxford Street, which comprises 6,100 square feet of office and retail space. The group also owns an extensive property pipeline, including 50 Baker Street W1, which consolidates three properties acquired over the past few years into a single office and retail building, scheduled for completion in the second half of 2029.

Put together, Derwent's existing portfolio and its pipeline are worth around 3,322p per share based on EPRA net tangible assets, an industry-standard performance measure. But the stock is trading at just 1,600p. According to analysts at Berenberg, this discount is deeper than the valuation trough in January/ February 2009. A yield of about 5.1% is also the highest ever recorded, based on records going back to 1984.

Commercial London property is highly sought after

Derwent's valuation is, in a word, surprising. Best-in-class London office property is highly sought after and the market is incredibly tight. This is clear from the company's recent leasing activity. In 2025, Derwent signed £11.3 million of new leases at 9.9% above previously estimated rental values. It also pushed through rises of 6.4% across the rest of its portfolio. In 2026, management predicted rental growth of 4%-7%.

The company's growth is better than the market average. According to Savills, rents for prime office space in the West End rose on average 6.1% to £166.61 per square foot last year, helped by financial firms moving from the City, where there's a structural undersupply of office space. At the prime towers, the vacancy rate is as low as 0.9% and just 0.2%, excluding those under offer. The fight for space is pushing up rents, which by West End standards were once low in the Square Mile. At 8 Bishopsgate EC2, law firm Proskauer Rose expanded onto the 46th floor on a 13-year lease, paying £145 per sq ft compared with the average of £74.34 for premium rents (Grade A) in the Square Mile (and closer to £40 for Grade B).

These figures illustrate the diversity of the central London property market. Derwent's portfolio sits somewhere in the middle. Its West End assets have an average rental value per sq ft of £72.77, including projects in the pipeline. Some of these major projects, after renovation, could command rents near £110 per sq ft. Over the next five years, management has estimated that leases expiring and rental reviews will drive up rents in the existing portfolio by about 30% per sq ft.

There are really three main reasons why REITs can trade at a deep discount to net asset value (NAV). The first is debt; too much at high rates is terminal. The second is demand or lack of it. If no one wants to rent the properties, they become a liability for the business rather than an asset. And the third is future liabilities.

One particular challenge the UK market is facing right now is the demand for high-end prime properties that are energy-efficient and have all the amenities staff have come to expect in their offices. The cost of bringing assets up to specification, especially in places such as central London, which has some of the highest planning fees and construction costs in the world, can often outweigh the potential benefit.

Derwent's unjustified discount

Derwent is addressing the upgrading issue by offloading smaller, older assets. It has agreed £144 million of asset sales so far in 2026, with a further £130 million under offer. This is freeing up cash for the group to reinvest in flagship prime developments, such as its 50 Baker Street development.

When completed, the new valuation is expected to show a 25%-plus profit on cost. In 2025, Derwent spent £182 million on regeneration and £142 million is planned this year. Major upgrades are expected to generate a 6.5% yield.

Asset recycling is helping Derwent keep debt under control. Its loan-to-value ratio stands at around 30% – management's target – with maturities fixed until 2034. It recently redeemed a £175 million March 2026 secured bond at 6.5% with “existing liquidity resources” (likely to comprise cash and revolving credit facilities). The next maturity is a £350 million 1.9% bond due in November 2031. Total interest on the company's £1.5 billion debt was covered 3.1 times by income last year.

So there don't seem to be any of the major issues that would usually justify a lower Reit valuation hanging over the company. The dividend is also covered 1.2 times by earnings per share, a figure that's expected to rise to 1.5 times by 2023. As new and upgraded assets start contributing to Derwent's bottom line, earnings per share are expected to rise by 25% to 30% by 2030. EPRA net tangible assets is also expected to rise to 4,119p per share, according to Berenberg.

The one unknown is how the London property market will evolve over the next few years. The outlook for the UK economy is uncertain, to say the least. Unemployment in London has surged to 7.9% for the November-January 2026 period, the highest in the UK and above its pandemic peak. However, Derwent's shares already have a substantial margin of safety baked into the current valuation. What's more, it's clear that while demand for office and retail space across central London faces an uncertain future, Derwent's portfolio of high-end spaces remains in demand. The uncertainty is even working in the firm's favour as other parties push back or delay new projects.

Today, Derwent's shares present a rare opportunity for investors to buy a portfolio of London property for around 50p in the £1 with a 5.1% yield and lots of growth ahead.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

UK property prices fell by 0.5% in March as the fallout from the US-Iran conflict hit the housing market.

The average house price dropped from £301,151 in February to £299,677 in March, according to the latest data from Halifax.

The lender put the slump down to the conflict in the Middle East, which has seen mortgage rates rise on fears inflation could accelerate over the coming months.

Amanda Bryden, head of mortgages at Halifax, said: “The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East.

“Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year.”

The pace of house price rises on an annual basis also went down from 1.2% in February to 0.8% last month as the market showed signs of slowing.

Some UK regions suffered more than others. Average house prices in the South East, where average values are higher, went down by 1.9% annually to £383,573 in March. In London, prices slumped by 1.2% to £536,751.

Strong house price growth is still being seen in the northern regions of England, where property values are lower.

The North East saw a 5% rise in the average price of a home year-on-year to £184,119 in March while the North West recorded annual growth of 3.1% to £247,442.

Northern Ireland continues to see house prices rise the most across the UK. In the year to March 2026, they surged by 8.7% to £224,809.

Scotland and Wales also recorded buoyant annual growth, with average prices up 4.4% and 1.6%, respectively. The average home in Scotland is worth £222,716 and £230,909 in Wales.

Credit: Halifax

What will happen to mortgage rates?

The latest monthly data from Halifax is one of the earliest signs of how the conflict in the Middle East is putting a stop on UK house price growth, according to experts.

Karen Noye, mortgage expert at wealth management firm Quilter, said: “March is the first full month in which the conflict in Iran fed through into UK mortgage pricing, making this data set an important early test of how higher borrowing costs are starting to affect the housing market.”

The US and Iran agreed a two-week conditional ceasefire on Tuesday 7 April, which sent oil prices plummeting and stocks rising.

However, the effective closure of the Strait of Hormuz off the coast of Iran since the start of the war in February, which led to oil, gas and fertiliser prices surging, is still likely to hit the housing market in the months to come.

Adam French, head of consumer finance at data firm Moneyfactscompare, said easing tensions in the Middle East would push down expectations for future interest rate rises, taking “immediate upward pressure off mortgage rates”.

However, mortgage rates “are likely to remain higher for some time yet”, he added.

“The volatility of the conflict can quickly move markets, which may leave many lenders cautious about making any sudden moves.

“The longer the ceasefire holds and markets calm, the more the mortgage market will stabilise, and rates could even begin to edge lower. But for now, it’s more likely to slow or pause increases rather than trigger any sharp falls.”

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Entrepreneurial real estate investment trusts (REITs) are taking advantage of the UK property sector's quiet upturn despite all the gloom about the economy.

“Last year saw a positive total return of 6.7% across all sectors, led by 7.8% for industrial and 8.9% for retail,” says Michael Morris of Picton Property Income (LSE: PCTN). “Offices are still struggling, but returns were still positive. Rental growth was also positive across all sectors, owing to the tightness of supply.”

The £405 million REIT has a portfolio of 46 assets valued at £699 million, mostly in the southern half of the UK. Two-thirds are in industrial-warehouse logistics, 21% in offices and 12% in retail and leisure (such as out of town retail parks).

The portfolio yield is 4.9%, but there is potential for higher rents as current leases expire, which would take the yield to 7.4%, says Morris. What's more, 17% of the portfolio is vacant as buildings are being refurbished, which will enable “meaningful” increases in rents.

Focus on smaller REITs

“The direct property market has been witnessing a recovery since September 2024, with valuations improving quarter on quarter driven by consistent rental growth across all real-estate sectors in the UK,” says Richard Shepherd-Cross of the £385 million Custodian Property Income (LSE: CREI). “We see real opportunity in the market at the moment.”

Custodian's £625 million portfolio is invested across an even broader range of regional property: 43% industrial; 22% retail warehouse; 14% offices; 7% high-street retail and 14% other. With 175 properties, these are on average smaller than Picton's. Rental growth last year was 2.5%, with the strongest growth in industrial logistics and retail parks.

Custodian owns properties that are too small for institutional investors. This is the area in which most of Britain's family property companies operate – a type of investor who often encounters challenges as time passes. The financial requirements of family members diverge; the portfolio lacks scale; management is time consuming; expensive expertise has to be bought in; and tax complications arise.

So Custodian is targeting deals with families who want to exit. By taking some or all of their payment as a tax-free share-for-share exchange at net asset value (NAV), the family members end up with shares in a liquid, diversified and professionally managed vehicle. The REIT has so far done three deals totalling £66 million and is looking for more. There are “tens of dozens” of family-owned property companies and Custodian is “actively pursuing a number of them”, says Shepherd-Cross.

Attractive yields

Picton has been performing notably well, at least until the recent wider market setback. The shares rose 16% last year and are still up 7% in 2026; Custodian gained 12% in 2025, although it is down 5% this year. Yet neither are expensive: Picton trades at a 23% discount to its end-December NAV, while Custodian is on a discount of 20%. Both offer an attractive yield – 4.8% and 7.6% respectively – which should continue to grow.

Both also have healthy balance sheets. Picton has a loan-to-value ratio of 23%, despite investing £6.5 million last year and spending £25 million on buybacks at an average discount to NAV of 25%. It is paying a weighted average interest rate of 3.7%, with an average of six years to maturity. Custodian has a loan-to-value ratio of 26% and an average cost of debt of 4%, with 70% of this fixed at an average rate of 3.3% and an average term of five years.

Picton may exit the market sooner than it should: the board has recently launched a strategic review and has received a number of proposals. Yet it is clear that both it and Custodian have solid prospect on their own merits, driven by rental growth, investment and acquisitions.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

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Times are tough for first-time buyers, with house prices remaining elevated and mortgage rates climbing in recent weeks.

But there are still hotspots in Britain where first-steppers have a better chance of getting on the property ladder.

Nationwide has ranked the most affordable places for first-time buyers looking to purchase a home when comparing house prices against average wages, with Inverclyde in Scotland taking the crown.

Average first-time buyer house prices are just 2.3 times average earnings in the local authority, based on Nationwide’s analysis of UK Land Registry and ONS wage data.

Properties within the Inverclyde area, on the west coast of Scotland and home to the towns of Port Glasgow and Greenock, average out at an inexpensive £100,000.

Burnley, in the North West of England, is also one of the most affordable places for first-time buyers, Nationwide said.

Average first-time buyer house prices are 2.8 times average earnings in the Lancashire market town.

Meanwhile, first-steppers looking for the cheapest place to buy in the North of England should head to Hartlepool, where average first-time buyer house prices are 2.9 times average earnings.

The most affordable spot for first-time buyers in Yorkshire is Kingston upon Hull. Average property prices there are three times the mean salary.

Nationwide’s research also revealed the cheapest areas to buy in all other regions in Britain, including Wales (Merthyr Tydfil), the West Midlands (Stoke-on-Trent) and East Anglia (Great Yarmouth).

The most affordable place for first-time buyers in the South East of England is Gosport, where average house prices are 4.7 times average earnings.

In London, first-steppers’ task of getting on the ladder is tougher. In this part of the UK, the Bromley area is the most affordable place to buy a first home, Nationwide said. Average property prices are 6.2 times the average salary there.

Credit: Nationwide

Where has first-time buyer affordability improved the most?

In Britain, around 70% of local authorities have seen an improvement in affordability over the last year when comparing house prices with wages, according to Nationwide.

The majority of the areas where affordability has become less stretched are in London, where house price growth has struggled in recent years. However, house prices in the capital still remain “elevated” relative to earnings compared to other parts of Britain.

Islington, London, is the area where first-time buyers have seen the biggest improvement in their chances of getting on the ladder across England, Wales and Scotland. Average house prices are worth 7.8 times average earnings compared to 10.6 times in 2024.

Meanwhile, first-time buyers are finding it easier to get on the ladder in the City of London. Average house prices are worth 8.4 times average salaries compared to 11.1 times in 2024, a difference of 2.7.

Six other London boroughs are in Nationwide’s list of the top 10 authority areas where affordability has become less stretched for first-time buyers, including Hammersmith and Fulham, Barnet and Hackney.

Outside of London, Norwich saw the biggest improvement in affordability for first-time buyers between 2024 and 2025, driven by a large rise in average wages in the area.

First-time buyers are also finding it easier to get on the ladder in Welwyn Hatfield, Hertfordshire, as higher salaries meet falling house prices.

Credit: Nationwide

Landlords have faced a number of challenges in recent years, including a hike to stamp duty payable on second homes from 3% to 5% and higher mortgage rates.

Other regulatory changes have further impacted the buy-to-let market.

The introduction of Section 24, which was phased in between 2017 and 2020, means landlords now have to pay tax on their full rental income before finance costs are deducted, leading to much higher tax bills for some.

Stagnating house prices have meant smaller profits too, particularly for landlords in London where property prices have plummeted in parts.

Further changes are set to come into force in 2026 and beyond, including the rollout of Making Tax Digital for Income Tax, the Renters’ Rights Act and a new Energy Performance Certificate regime. Landlords need to prepare themselves for the changes.

Tim Thomas, policy and campaigns officer at Propertymark, a trade body for estate agents, said: “The operational landscape for many landlords is one of mass evolution as we head further into the year.

“For landlords it will represent some of the biggest changes in well over 30 years and it is essential there is proactive planning to ensure compliance on new rules.”

Here’s everything you need to know ahead of the changes coming into force.

Making Tax Digital for Income Tax - from 6 April, 2026

Making Tax Digital for Income Tax is being rolled out from 6 April 2026 for landlords with annual rental incomes over £50,000.

You will have to report your income and expenses to HMRC digitally on a quarterly basis.

Landlords earning between £30,000 and £50,000 will have to do this from April 2027 while individuals with income between £20,000 and £30,000 will need to follow the new rules from April 2028.

More than 860,000 self-employed people and landlords will have to start reporting their income and expenses through the new digital process from April 2026.

The change is part of the government’s efforts to modernise the tax system and ensure the information provided by taxpayers is more accurate.

Thomas, from Propertymark, said: “Over time, this methodology will ultimately supersede traditional paper or online self-assessment returns and will be implemented for everyone in phases, depending on turnover and as time progresses.”

Landlords will need to make sure they’re compliant with the new rules as penalties will apply to those that aren’t.

A penalty point is issued for a late quarterly update or return with a £200 penalty charged if you reach four points within two years.

You will need to report your income and expenses through compatible software. HMRC has a software finder tool you can use to find software that will work.

Renters’ Rights Act - 1 May, 2026

The Renters’ Rights Act is one of the Labour government’s landmark pieces of legislation but has faced criticism from landlords – yet, it’s still worth understanding how it will affect you.

The Act passed in October 2025, with the first major reforms on evictions and tenancies taking effect on 1 May 2026.

From 1 May, the following changes will kick in:

• End of ‘no-fault’ (Section 21) evictions – landlords in the private rented sector won’t be able to evict tenants without a valid reason.
• Fixed contracts abolished – all tenancies in the private rented sector will roll on from month to month or week to week (depending on the arrangement you have with a tenant) with no end date. Tenants can also end them with two months’ notice.
• New rental rules – landlords can only raise rent once a year, while renters will have the power to challenge unjustified hikes.
• No more bidding wars – landlords must stick to no more than the advertised rent price.
• One month’s rent upfront, max – landlords can’t ask for more than one month’s rent upfront.
• Refusing tenancy to those on benefits or with children abolished – it’ll be illegal to refuse tenants just because they receive benefits or have kids.
• Pets policy – renters will be able to ask to live with a pet and any requests can’t be “unreasonable refused” by landlords.

Other aspects of the Renters’ Rights Act will kick in from late 2026, including the introduction of a Private Landlord Ombudsman renters will be able to take complaints to.

A Private Rented Sector Database will also be rolled out so renters can check if you as a landlord are registered.

After this, Awaab’s Law, which makes it incumbent on landlords to address all emergency hazards like damp and mould, and already applies to the social rented sector, will be applied to the private renter sector following a consultation.

The National Residential Landlords Association, a trade association for landlords, has issued guidance on its website of what landlords can do ahead of the changes being implemented as part of the Renters’ Rights Act.

This includes inspecting your properties and addressing any potential hazards, doing checks on prospective tenants and ensuring your letting agent, if you use one, is ready for the changes.

It’s crucial you follow the new rules when they come into force – initial or minor non-compliance will incur a civil penalty of up to £7,000 and serious, persistent or repeat non-compliance a civil penalty of up to £40,000, with the alternative of a criminal prosecution.

New Energy Performance Certificate metrics - second half of 2027

Landlords must ensure all private rental properties have an EPC rating of C or above by 2030 under the Minimum Energy Efficiency Standard (MEES), up from E currently.

However, under a new system via the Home Energy Model landlords will have to meet two metrics out of a possible three to meet the C rating, rather than one.

Landlords will have to meet a “fabric performance” standard through installing measures like loft insulation, cavity wall insulation or double glazing.

They will then have to meet either a “heating systems” or “smart readiness” metric. The heating systems metric will mean landlords having to install measures like heat pumps while the smart readiness metric would see landlords getting solar panels installed.

You could face spending thousands to reach the new C standard.

The new metric system was due to be launched in October 2026, but ministers have now pushed this back to the second half of 2027.

This means what classes as an EPC rating of C now might change in the future.

If one of your rentals has an EPC of D or lower, you should take steps now to ensure they meet the current C rating so you’re more likely to pass the new EPC ratings.

Adding insulation to your loft or cavity walls, upgrading to LED lighting across your home and installing a smart thermostat can all boost the EPC rating of your home.

You might also be able to get a grant of up to £7,500 toward the cost and installation of a heat pump through the Boiler Upgrade Scheme, which has been extended to 2030.

Thomas, from Propertymark, said: “Given the current shortage of skilled tradespeople and the high volume of properties requiring upgrades, addressing these environmental improvements now is essential.”

Minimum qualifications for letting agents - date to be confirmed

In 2025, the government laid out plans to increase regulation among estate agents, namely by introducing mandatory qualifications for letting agents.

Ministers also laid out proposals to implement a Code of Practice setting out a minimum standard property agents, including estate, letting and managing agents, have to meet.

No date has yet been set on when these new rules would come into effect, with a consultation having closed and the government considering next steps.

Ahead of any changes coming in, landlords using letting agents should ensure they hold correct qualifications.

If not, you may want to switch to a different company that is ready for the upcoming law changes.

Galliford Try (LSE: GFRD) is a construction business that has managed to get things right. It is a UK-based company that specialises in a wide range of projects, such as the construction of schools and prisons. Its business is divided into three segments: constructing and renovating buildings and facilities; running infrastructure (primarily roads and sewage systems) and providing specialist services (such as maintenance). This set-up comprising three divisions ensures that the group is not too dependent on a single project or one type of service, and avoids the opposite trap of becoming sprawling or unfocused.

The construction sector offers investors a compelling long-term outlook. Most major economies urgently need to repair or replace ageing infrastructure, thereby making up for decades of underinvestment. At the same time, there is a chronic shortage of housing in many countries, especially the UK. But the sector is not without risk. Construction firms are prone to cost overruns, while housebuilders can also be affected by short-term turbulence in the housing market.

Galliford Try is on a buying spree

Galliford has bolstered its business through buying a range of smaller firms in related areas and has plans to expand its efforts in affordable housing. This is a shrewd move as the government has made building more affordable housing a priority. The group's high rate of repeat customers and bulging order book both suggest that its clients are happy with the level of service it is providing, and offer a degree of insulation against an economic downturn. In addition to planning to keep increasing sales, Galliford is also trying to expand its margins through a combination of volume growth, high efficiency and focusing on more profitable work. Galliford's revenue grew by more than two thirds between 2021 and 2025, while it more than doubled its adjusted earnings per share during the same period. At the same time, it has managed to become more efficient when deploying its capital. Its return on capital employed has climbed to well above 20%. This in turn has enabled the company to quadruple its dividend.

Despite this success, the stock still looks attractive from a valuation perspective, trading at a more than reasonable 13.4 times expected 2027 earnings, with a solid dividend yield of 4.1%.

Galliford's operational strength, strong future prospects and favourable valuation have translated into significant market momentum, with the share price up by around half over the past year. The stock has continued to do better than the overall market over the last six months and is also trading above both its 50-day and 200-day moving averages. I would therefore suggest that you go long at the current price of 538p at 5p a share. In that case I would put the stop-loss at 340p, which gives you a total downside of £990.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

The commuter belt is being shaken up by a return to the office, families looking for affordable ways to move up the housing ladder and better transport links.

The ‘race for space’ that dominated the coronavirus period, when homebuyers snapped up coastal and rural properties, has subsided, according to estate agent Savills.

But second steppers and growing families with less equity due to a poor macroeconomic backdrop and higher mortgage rates, are still pushing the traditional commuter belts further afield than before the pandemic.

Better transport links, such as the new Elizabeth Line in the South East, have also opened up areas previously unavailable to people looking to escape the hustle and bustle.

Frances McDonald, director of research at Savills, said: “During the pandemic, a combination of the ‘race for space’ and the rise of hybrid working meant buyers were willing to compromise on longer commutes in favour of lifestyle priorities.

“Five years on, our latest analysis shows the commuter belt has tightened again as office attendance has increased, but it remains less compact than it was before the pandemic.”

For those considering a move to the commuter belt, which locations offer affordable house prices and cheap train travel?

Savills compiled a list of areas with train stations offering direct lines in London, Birmingham, Manchester and Edinburgh offering the cheapest season tickets, plus how much homes in these areas will set you back.

Commuter hotspots near London

Iver, Buckinghamshire

With average house prices sitting around £540,000, the greenbelt village of Iver is ideal for buyers looking for countryside living combined with accessibility to the capital.

Season tickets, taking you from Iver train station into London Paddington in just 28 minutes, cost £2,868 a year.

Prittlewell, Essex

House prices in this inner city area of Southend-on-Sea come in at an affordable £295,326 and trains from Prittlewell station into London Liverpool Street take just under an hour.

A yearly season ticket will set you back £5,120 for the year, but with property prices just £25,000 over the UK average of £270,259, this is an ideal spot for those wanting seaside living within a stones throw of the capital.

Corby, Northamptonshire

Corby is an option for buyers looking for somewhere further afield with plenty of green spaces but with cheaper housing – the average house price here is £225,245.

Trains from the town’s main train station take just 66 minutes to get into London St Pancras, but you will have to fork out £10,624 a year for a season ticket.

Commuter hotspots near Manchester

Styal, Cheshire East

Homes in Styal have an average price of £411,992 and trains into Manchester Piccadilly station take just 43 minutes. A season ticket will set you back £1,596.

The village sits on the outskirts of Manchester with National Trust woodlands nearby to explore, making it popular with dog walkers and families.

Bamford, High Peak

Average house prices average out a slightly steeper £523,615 in Bamford, a leafy suburban area in the borough of Rochdale close to Ashworth Valley.

Trains take just under an hour to get into Manchester Piccadilly with a season ticket costing £3,560.

Holmes Chapel, Cheshire East

Trains from Holmes Chapel – the hometown of singer Harry Styles – take just 42 minutes to get into Manchester Piccadilly, despite the village being over 20 miles from the city centre, with season tickets costing £3,260.

The average home there will cost you £350,304.

Commuter hotspots near Birmingham

Wootton Wawen, Stratford-upon-Avon

The small village of Wootton Wawen is about 20 miles from Birmingham and over six miles north of Stratford-upon-Avon, the birthplace of William Shakespeare.

Trains from the main station into Birmingham Moor Street take 46 minutes at a yearly cost of £1,880. The average house price is a bit more expensive at £520,711.

Hartlebury, Wychavon

This historic rural village is home to a 13th century castle and just 52 minutes from Birmingham Moor Street on the train.

A season ticket costs £1,552 and average house prices aren’t too steep either, costing around £376,790 on average.

South Wigston, Oadby and Wigston

This large town close to Leicester is home to around 7,000 people and offers a direct line train into Birmingham New Street station that takes 49 minutes.

A season ticket will cost you a more dear £3,972 a year, although the average house price is less than £250,000.

Commuter hotspots near Edinburgh

Camelon, Falkirk

A suburb in Falkirk, trains into Edinburgh Waverley station from Camelon take just 37 minutes, with season tickets costing £2,396.

Trains into Glasgow take around a similar time too, while house prices are a major plus – the average property costs £173,381, well below the UK average.

Fauldhouse, West Lothian

Another village equidistant between Glasgow and Edinburgh, Fauldhouse train station offers commuters a 36 minute journey into Edinburgh Waverley at a yearly cost of £2,224.

The average property price is only £155,947 too. Inside the village of around 5,000 residents is a library, pool and gym, golf course and two primary schools.

Stirling, Stirling

Trains from Stirling into Edinburgh Waverley take 50 minutes and season tickets cost £2,396. Homes are a slightly pricier £215,224 on average.

Close to the Ochil Hills and known as the ‘Gateway to the Highlands’, the town is home to a university, the historic National Wallace Monument, commemorating the life of Sir William Wallace, and a number of well-respected primary and secondary schools.

The average house price for the UK has hit £300,000, but a property on the most expensive street in the UK will cost you over £12 million.

It will come as no surprise the most expensive street in the UK is in London, where house prices are still relatively high at £553,258 on average – 104% higher than the UK average of £271,188.

But some streets will cost well above the average and are considered as some of the most expensive in the UK.

We reveal the most expensive streets in the UK, according to the latest Rightmove data.

What are the most expensive streets in the UK?

A London road has topped the list as the most expensive one in the UK – it’s Winnington Road, Barnet.

The average asking price of a property on Winnington Road, Barnet, averages out at a handsome £12,538,095, according to analysis by Rightmove.

Streets across London dominate the top 10 list, with just one road outside the capital featuring.

Colleen Babcock, Rightmove’s property expert, said: “Britain’s most expensive streets always capture the nation’s attention and this year we see Winnington Road in North London as Britain's most expensive street based on asking prices.

“In fact, this year's list is taken up almost entirely by London addresses, showing the city still reigns supreme when it comes to ultra-prime property.”

We look at whether London’s property boom is over in another piece.

After Winnington Road, Chester Square in Westminster is the next most expensive street to buy a property, with an average asking price of £11,546,428.

Another Barnet street is next – The Bishops Avenue – commanding an average asking price of £8,930,650.

Four other streets in Westminster take up a large bulk of the top 10 list, including Ebury Square (£8,521,111), Knightsbridge (£8,260,000) and Wilton Place (£7,921,429).

The only street in the top 10 most expensive in the UK outside London is East Road in the leafy suburban town of Elmbridge, Surrey. The average asking price there? A substantial £8,795,714.

Credit: Rightmove

What are the most expensive streets outside of London?

While London is the frontrunner in being home to the most expensive streets in the UK, Rightmove’s research also revealed the priciest addresses outside the capital.

East Road in Elmbridge tops the list by some way, with the next most expensive street Newlands Avenue, Hertsmere, in the East of England.

Just north of the English capital, the average asking price there is £3,950,000, according to Rightmove’s analysis.

Congleton Road, in Cheshire East, follows, with homes down this road commanding an average asking price of £3,323,500.

Larch Avenue, in Windsor and Maidenhead (£2,779,167) and Salterns Way, in Bournemouth, Christchurch and Poole (£2,460,000) also come out high in the top 10 list.

Credit: Rightmove

What are the most expensive streets across each UK region?

Because southern and middle England dominated the list of locations with the most expensive streets overall, Rightmove also looked at the priciest roads for each region of the UK.

Main Street, in Charnwood, has the highest asking price in the East Midlands, with a home there costing an average of £1,238,571.

Runnymed Road, in Northumberland, commands the highest asking price in the North East, with a home there worth £1,726,111.

Drumsheugh Gardens, in Edinburgh, is the most expensive street to buy a home in Scotland – asking prices average out at £560,000.

In Wales, Hollybush Road, Cardiff, is the priciest spot to bag a home – average asking prices there sit at £1,237,500, Rightmove said.

Tiddington Road in Stratford-on-Avon is the most expensive street to buy in the West Midlands (£2,306,667), while Wigton Lane, Leeds, is the priciest road in Yorkshire and The Humber. Buying a home here will set you back £1,317,857.

Credit: Rightmove

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

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High house prices, mortgage costs and rents have made getting on the property ladder a challenge for first-time buyers. However, one major northern English city is proving popular among those keen to dip their toes into the market.

The “Capital of the North”, Manchester, had the highest share of homes bought by first-time buyers outside of London in 2025, according to new research by Lloyds Bank. Of all home purchases in the city, 70.2% were by people getting onto the property ladder.

The analysis looked at the locations outside London where first-time buyers made up the highest proportion of all mortgaged home purchases.

Lloyds said Manchester was pulling in buyers due to the range of property types available and relative affordability compared to the rest of Britain. Manchester’s booming economy and abundant job prospects were further draws for buyers.

It said the average first-time buyer house price in Manchester is £230,090, almost £25,000 below the average first-time buyer price (£254,920) across Britain.

Amanda Bryden, head of mortgages at Lloyds, said: “Affordability is the number one priority for most first‐time buyers, and we’re seeing more people cast their net wider to find places that match both their lifestyle and their budget.

“That flexibility can quite literally open up more doors. Manchester is a magnet for those seeking modern city-living.”

Where else are first-time buyers purchasing properties?

First-time buyers are also seeking properties across the Midlands and East of England, according to the Lloyds research.

Of the top 10 areas with the biggest share of first-time buyers across England, Wales and Scotland, eight were in these two regions.

In Sandwell, West Midlands, first-time buyers made up 69.7% of the market while in Birmingham (West Midlands) and Luton (East of England) this figure was 69.4%.

Thurrock (East of England), Leicester and Oadby (East Midlands) and Coventry (West Midlands) also featured in the top 10 list.

First-time buyers in these areas made up 68.2%, 66.9% and 66.5% of all home purchases, respectively, in 2025.

Across Wales, the area with the highest first-time buyer market share was in Rhondda Cynon Taf, where entry level buyers made up 57.9% of all home purchases.

In Scotland, Glasgow, the country’s biggest city by population, was the area where first-time buyers were snapping up the largest proportion of homes (57.9%).

Credit: Lloyds Bank

Where are first-time buyers gaining ground in the UK?

Worcester, in the West Midlands, saw the biggest jump in the number of first-time buyers purchasing homes between 2024 and 2025, Lloyds said.

Just 40.6% of all homes bought in the area in 2024 was made up of first-time buyers, but this leapt to 58.7% in 2025.

Runnymede in the South East saw the second biggest rise. In 2024, entry level buyers made up 47.1% of the market share, but this increased to 62.4% in 2025.

Next was East Hampshire in the South East, where 33.2% of all homes were bought by first-time buyers in 2024, rising to 48.8% in 2025.

Credit: Lloyds Bank

Top tips for first-time buyers

MoneyWeek spoke to Nick Mendes, mortgage technical manager at broker John Charcol, who shared his top tips for first-time buyers facing a tricky market.

1. Understand your ‘true’ borrowing capacity

Work out how much you can actually afford to borrow before setting your sights on a property and realising it’s out of your budget.

Online mortgage calculators are useful for getting a basic idea of how much you can borrow but these generally won’t factor in things like overtime, bonuses, student loans and childcare costs.

A broker can help you sense-check the numbers early on and save you the disappointment of viewing a property that you consequently realise is out of reach.

Do note, brokers may charge you a fee for their services, may take a commission from the bank or lender, or might even do both. Fees can vary between £400 and £500, according to Unbiased.co.uk.

2. Have a deposit strategy

Often the larger the deposit, the better the mortgage rate you’ll be offered and the more equity you’ll hold in your home, but it’s not always worth trying to build up a big deposit.

“In some cases, buying with a 5% or 10% deposit sooner can make sense, particularly if rents are high and prices in your target area are moving upwards,” Mendes said.

3. Keep your credit score in check

It is possible to be approved for a mortgage with bad credit history, but you’ll likely be offered a higher interest rate and may need to foot a bigger deposit.

So keep an eye on your credit profile in the six to 12 months before applying for a mortgage and make sure you don’t do anything that dents it.

“Small issues like missed payments, taking out lots of credit or taking out new finance can have a disproportionate impact,” Mendes said.

You can counteract this by keeping credit balances low and avoiding applying for new credit. Beware of making too many bank switches as well, as this can impact your score.

4. Look for ways to stretch affordability

Some lenders will offer enhanced mortgage income multiples to those with higher salaries. A mortgage income multiple is the multiple of your annual income that a lender will use to determine the maximum size of mortgage loan you can afford. A higher multiple means they are willing to lend you a bigger maximum amount.

For example, Barclays recently increased its maximum loan-to-income (LTI) to six times income for borrowers with combined incomes of at least £75,000.

Meanwhile, signing up for a longer fixed-term mortgage deal means a lender might let you borrow more as they’re not subject to stricter stress-testing rules imposed by the Financial Conduct Authority (FCA).

Bear in mind, fixing your mortgage for longer generally means you’ll be offered a higher interest rate, as lenders have less certainty over where the market will be in five or 10 years’ time, so they are taking more of a risk by allowing you to fix for a longer period.

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

Nothing quite beats taking in a breathtaking view – and having one from your home could boost its value by tens of thousands of pounds.

Simply owning a property with a view of the sea, rolling countryside or a cityscape can bump up its asking price by 28%, according to new research from estate agents Yopa.

Yopa analysed properties currently on sale in England surrounded by attractive scenery and compared their asking prices against similar homes (based on size and number of bedrooms) in the same postcodes without good views – and found vast differences.

Across England, homes offering desirable views commanded prices 28.1% higher (£712,192) than like-for-like properties (£556,531) in the same areas without good views.

Asking price gap biggest in the North East

The gap in price between homes with a view and those without was biggest in the North East of England, according to Yopa’s research.

The average price of these types of properties in the region is £501,822, compared to £372,744 for those without views – a 34.6% jump.

In the East Midlands, homes with attractive backdrops command asking prices of £601,737 on average, versus £451,686 for comparable properties without picturesque views – a 33.2% difference.

In the North West, homes with a view come with a mean asking price of £554,595 versus £420,649 for those without – a difference of 31.8%.

Even in crowded London, where you’d think homes with a view are few and far between, you can still get tens of thousands of pounds more for a property with a decent panoramic than one without.

A property in the capital with a great view has an average asking price of £1,087,148 while one without is likely to go for £912,726, a 19.1% gulf.

Verona Frankish, chief executive officer of Yopa, said: “Whether it’s coastline, skyline, or countryside, buyers are clearly willing to pay a substantial premium for a home that offers something special beyond its four walls.

“What’s particularly notable is that the strongest premiums are found outside of the nation’s most expensive housing markets. In many northern regions, where overall house prices tend to be lower than in the south, the relative value of a great view becomes even more pronounced.”

Credit: House price data sourced from PropertyData by Yopa

Which regions have the most homes with a view?

The English regions with the highest proportion of homes with great views are the South West and South East, respectively, according to Yopa’s analysis.

Almost 34% of all homes across England with great views are based just in the South West while more than 25% found in the South East.

Around 11% are in London while 5.7% are in the East of England.

The region with the lowest proportion of homes with great views is the North East. Just 1.9% of all homes in England commanding stunning views are found there.

Meanwhile, just 3.8% and 4.9% of all homes with stunning views are in the East Midlands and West Midlands, respectively.

We reveal what other key features can boost the value of a home in another piece.

Being single can be tough financially and in partcular, it can also make getting on the housing ladder harder.

High house prices mean it is obviously easier to buy a home with a partner, but that means there is technically a single premium when you want to get on the property ladder.

Research by Zoopla shows couples typically dominate the first-time buyer landscape - accounting for almost 60% of purchases, with singles accounting for just 39% of first time purchases.

This is attributed to affordability constraints, high mortgage rates and regulations working against single-earners.

But there is some hope for single people looking to buy a property.

Zoopla crunched the numbers to identify the most ‘single-friendly’ areas to buy a property. The affordability calculations are based on regional value-to-earnings ratios, which compare average Zoopla house value estimates for a one or two-bedroom property and the annual gross salary of a full-time earner in the corresponding local authority.

The research then calculates the typical mortgage repayments on a rate of 4% over 30 years and a deposit of 20% for each region,

The analysis suggests several cities and towns are still accessible to the average single person.

Richard Donnell, executive director at Zoopla, said: “Buying a home can feel out of reach for many singles who have to rely on just one income to cover mortgage and other costs of home ownership. Rising incomes and lower mortgage rates mean that owning a home by yourself is increasingly possible.

“For many that means buying a smaller sized home where property prices have risen more slowly than for larger, family sized homes in recent years.

"It’s important to do your research digging into mortgage affordability and products aimed at singles while considering alternative locations and selecting the right area for you. It’s important to know that buying as a singleton is an option.”

The most single-friendly towns and cities to buy a property

Aberdeen and Sunderland have been named the most affordable cities for single homebuyers.

Buyers would need an average of £438 per month to meet monthly mortgage payments for a one to two bedroom home in Aberdeen, based on an average property value of £114,700. The city has a house price to earnings ratio of 3.5%.

Cities in North England and Scotland actually make up six of the top ten most affordable spots for single buyers.

To buy a one to two bedroom home in Sunderland, single buyers will need to set aside £408 per month, or 17% of their gross monthly income. The house price to earnings ratio for the city is 3.7%.

In Hull, single buyers will have to set aside 19% of their wage per month to afford the average home, with a house price to earnings ratio of 4.5%.

But not everywhere in the North is as affordable. York and Stockport are amongst some of the least affordable areas in the North of England for single buyers. A one to two bedroom home in York costs an average of £256,100, an average 34% of monthly income to afford £978 mortgage repayments, Zoopla said.

In Stockport, the average value of a one or two bedroom home sits at £225,100 with mortgage payments of £860 accounting for 30% of gross monthly incomes.

In the South of England, Milton Keynes comes in as the least expensive city to buy a home with an average house price of £230,400 and mortgage repayments of £880 per month - compared to an average annual income of £36,900 in the area.

In contrast, Brighton tops the list of the least affordable cities to buy in outside of London, with mortgage repayments averaging at £1,238 per month, based on an average house price of £324,100.

The cost of being single for London homebuyers

London is renowned for its high house prices, with average mortgage repayments in even the most affordable areas above £1,000 for a one or two bedroom home, Zoopla said.

But some London boroughs are more affordable than others for single buyers.

Havering in East London is the most affordable borough in the city with average house values coming in at £305,200 and a 20% deposit of £61,000, resulting in £1,166 monthly mortgage payments.

Croydon comes in second where fantastic transport links are attractive to single Londoners. Here, buyers will need to set aside £1,173 in monthly payments, or 34% of their monthly income.

Kesha Foss-Smith, regional director at prime estate agent John D Wood & Co, said: “Single buyers are becoming far more strategic about where and what they buy.

“Many are prioritising affordability over postcode prestige and choosing areas that still offer good transport links, local amenities and long-term value.

"The combination of stabilising house prices and improved mortgage rates has opened doors again, and we’re seeing renewed confidence in the market, particularly for one and two-bed homes. With more choice coming onto the market and sellers being more open to negotiation, this is one of the more favourable windows we’ve seen for single buyers in recent years.

“For anyone buying solo, being flexible on location and property type is now the key to making ownership realistic. While buyers currently have more choice and negotiating power than in recent years, this window of opportunity is unlikely to last forever - making now a smart time for single buyers to act.”

The housing market is showing tentative signs that it may be turning a corner with sentiment around sales and house prices becoming less negative, according to the Royal Institution of Chartered Surveyors (RICS).

The property market was hampered at the end of 2025 amid uncertainty about tax rises in the Autumn Budget, which led to a dip in house prices towards the end of the year.

Recent house price index data from Halifax and Nationwide shows lower mortgage rates have been taking a while to filter through to wider market activity.

But the latest figures from the January RICS Residential Market Survey suggest there is more optimism at the coalface.

The RICS report generates net balance scores between -100 and +100 in response to a series of questions put to its members (estate agents and surveyors) about how the housing market has changed.

The data shows several key indicators have continued to improve, recording their least negative readings in months.

New year, new housing market optimism?

RICS members reported that new buyer enquiries improved in January, with the net balance rising to -15%, up from -21% in December and -29% in November.

Agreed sales followed a similar trend, with the latest net balance of -9% – the least negative reading since June 2025.

Hopes for house price growth at a national level appear to be stabilising. The net balance for price growth over the past three months stood at -10%, improving steadily from a low of -19% in October 2025.

House price growth remains strongest in Scotland and Northern Ireland, with upward trends also reported in the North West and North of England, according to the report.

In contrast, London, the South East, South West and East Anglia continue to lag behind the national average reflecting ongoing affordability challenges, RICS said.

Looking ahead, expectations for sales over the next three months eased to a net balance of +4%, but rose to +35% when considering the next 12 months – the strongest reading since December 2024.

Simon Rubinsohn, chief economist for RICS, said: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual.

“While the strengthening 12-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty. Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months.”

Will house prices rise in 2026?

There are hopes that lower mortgage rates will boost buyer demand and ultimately push up house prices.

But mortgage pricing has actually been rising in recent weeks and the Bank of England held rates in February amid high inflation, which may well dampen activity in the short term.

This is reflected in responses to the RICS’ survey, with sentiment about house price growth negative over the next three months.

However, +43% of respondents anticipate higher prices over the year ahead which is the most positive outlook since February 2025.

Tom Bill, head of UK residential research at Knight Frank, said: “Plans put on hold by the Budget were activated either side of Christmas, which produced positive demand signals in the early weeks of the year.

“However, buyers and sellers are once again operating against the unsettling backdrop of a prime minister on borrowed time. A leadership challenge is likely to derail sentiment in the short term but demand in the longer-term will be shaped by the economic policy platform of any new prime minister and whether falling inflation can drag down mortgage rates with it.”

The average price of a house in the UK has risen above £300,000 for the first time, as buyers have returned to the market after a December dip.

The milestone will be welcomed by homeowners who, on average, will have seen the price of their property reach new highs. But for prospective buyers, the growth will depress affordability even more.

House prices increased by 0.7% month-on-month between December and January, bringing the average price of a home to £300,077, new data from Halifax shows.

The January rise also reversed December’s 0.5% fall, giving house price growth a strong start in the new year.

Meanwhile, the annual rate of house price growth edged higher to 1%, between January 2025 and January 2026, up from 0.4% in December.

Quarterly growth in the three months to January was effectively flat, rising by just 0.1%.

Amanda Bryden, head of mortgages at Halifax, said the “housing market entered 2026 on a steady footing,” with activity levels showing the market has stayed resilient despite the ups and downs of recent years.

The average price of a house has risen by 5.7%, or around £16,000, over the past three years, significantly lower than the growth seen during and just after the coronavirus pandemic.

House price growth between 2023 and 2026 was restricted as higher interest rates and stretched affordability pushed down demand and kept house price growth muted.

In contrast, the three years between 2020 and 2023 saw prices increase by almost 19%, or around £44,000, as buyers embraced the low cost of borrowing.

Despite house price growth being relatively low in the last three years, Bryden believes the market’s health is set to get better.

She said: “Broader economic conditions continue to provide some support. Wage growth has been outpacing property price inflation since late 2022, steadily improving underlying affordability. That’s a positive trend for buyers, and the long-term health of the market.

Affordability worsens as house prices rise

While rising house prices will be welcome news for those who already own a house, it is less good news for those who are trying to become homeowners.

With increasing prices, those attempting to get onto the housing ladder are having a more difficult time putting together enough savings for a deposit, and seeing more of their income being spent on mortgage payments.

However, Bryden says there are signs that affordability could increase this year, even while house prices shoot over the £300,000 milestone.

She said: “Affordability is still a challenge, but stronger wage growth and falling mortgage rates have helped relieve some of the pressure in recent years.

“We expect that improvement to continue in 2026, meaning that with the right support and advice, home ownership should become a realistic prospect for more would-be buyers.”

She added that while the headline numbers may be daunting for first-time buyers, most will be looking for smaller properties at a price point significantly lower than the average.

“Many locations offer far more accessible price points, especially in northern regions where homes can often be found for under £200,000.”

Regional house price performance differences deepen

Large price differences between different regions in the UK are not a new phenomenon, but they have become more pronounced in recent years as the divide between house prices in the north and south has deepened.

Northern regions and the devolved nations have consistently experienced strong house price growth as demand has remained high, while some regions in the south have seen price growth stall or even reverse.

The UK region that experienced the highest annual price growth was Northern Ireland, where prices increased by 5.9% in 2025, meaning the typical house there now costs £217,206.

Scotland also experienced high annual price growth of 5.4%, bringing the average price of a house in the nation to £221,711.

As for England, its northern regions and the Midlands were the only places where house prices grew in the past year.

The North West leads the way, as the average price of a house there increased by 2.1% to £244,329, while the North East saw prices increase by 1.2% to £181,198.

Not a single southern region saw the average price of a home increase in 2025.

The two worst-performing regions were the South West and South East, where average prices fell by 1.6%.

Greater London also suffered shrinking price growth, as the average house there is now 1.3% lower than it was a year ago, bringing it to £538,600.

Source: Halifax, 6 February

Average house prices started the year on an upward trend, raising hopes of a recovery, Nationwide data suggests.

The latest Nationwide House Price Index shows average house prices rose by 1% annually in January 2026, an improvement on the 0.6% recorded a month before.

Average house prices also rose 0.3% on a monthly basis after a decline in December, blamed on the aftermath of the Autumn Budget.

This puts the average UK house price at £270,873, Nationwide said.

Property values could rise further if affordability improves and interest rates are cut further.

Robert Gardner, Nationwide's chief economist, said: “The start of 2026 saw a slight pick-up in annual house price growth.

“Housing market activity also dipped 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 remained 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.”

The new year housing market

It’s been a different start to the year compared to 2025.

Homebuyers and sellers entered 2025 with a rush to beat changes to stamp duty thresholds.

The final months of 2025 were dominated by uncertainty about Autumn Budget tax rises. The only major change to property taxes in the end was the announcement of a mansion tax, which will be introduced in April 2028.

With the Budget out of the way, there is less uncertainty this year and more optimism as buyers hope for more interest rate cuts, which should mean cheaper mortgages.

Research suggests affordability constraints have eased over the past year, attributed to earnings growth outpacing house price growth and also a steady decline in mortgage rates. This has helped underpin buyer demand, the building society said.

A prospective first-time buyer earning the average UK income and buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 32% of their take-home pay – slightly above the long-run average of 30% and well below the recent high of 38% recorded in 2023, Nationwide found.

All parts of the UK, with the exception of Northern Ireland, saw an improvement in affordability over the past year.

For the second year running, London saw the largest improvement in affordability but remains the least affordable region by a significant margin.

Affordability pressures remain pronounced in the South of England, whilst in the North,

Yorkshire & The Humber and Scotland, mortgage payments as a share of take-home pay are slightly below their long-run average, Nationwide said.

Will house prices rise in 2026?

House price growth slowed towards the end of 2025 as the market adapted to higher stamp duty costs and stalled amid Autumn Budget uncertainty.

But there are hopes for more growth in 2026, with more interest rate cuts expected in 2026.

Gardner added: “Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained.”

Tom Bill, head of UK residential research at Knight Frank, said: “House prices edged higher as certainty following the Budget triggered a flurry of deals before Christmas.

“However, mortgage approvals in the same month were 9% below the five-year average, showing that demand is still fragile. The chances of two rate cuts this year have faded in recent weeks for reasons that include stronger-than-expected UK economic data, which underlines how prices and transaction levels will remain under pressure.

“The absence of political drama over the next few months would help confidence grow, but that might be wishful thinking.”

More homeowners than ever are using equity release to pass some of the almost £4 trillion over 55s hold in property wealth onto the next generation, according to new research.

Equity release allows older people to access the wealth in their homes, in the form of a loan against their property’s value, without needing to sell or move.

A shift has occurred in the reasons why homeowners are choosing equity release, with a record number doing so for intergenerational gifting – one way to potentially avoid inheritance tax – according to 2025’s full year data from Canada Life, which provides equity release loans.

Last year almost a fifth (19%) of those using equity release did so to gift money to family members. This is up 3% on the previous year, and the highest figure recorded in a decade of Canada Life’s customer data.

This upward trend points to the increasing significance of intergenerational support, as older homeowners look to help children and grandchildren with financial milestones such as house deposits and education fees.

Sadna Zaman, home finance proposition manager at Canada Life, said: “More customers are incorporating equity release into their estate planning strategies, using property wealth to pass assets to the next generation in a timely and tax-efficient way.

”This is enabling families to support loved ones with major milestones, such as home purchases or education, while also potentially reducing inheritance tax liabilities.”

How much UK property wealth do over 55s have?

Property owners in the UK aged 55 and over held a total of £3.7 trillion in property wealth in the period April 2020 to March 2022, according to Office for National Statistics data.

This represents 68% of the nation’s total housing wealth – defined as the value of all properties minus mortgage debt.

Equity release is only available to certain homeowners typically aged 55 and over.

The 55 to 64 age group owns the greatest amount of private property wealth with a total value of £1.4 trillion, a quarter of the nation’s private housing wealth. The cohort aged 65 to 74 holds £1.2 trillion (23%) and those aged over 75 hold £1.1 trillion (20%).

Stephen Lowe, group communications director at retirement firm Just Group, said: “The sheer scale of property wealth held by older people enables them to plug into the powerhouse of financial resources held in their homes to meet a range of needs in later life – from topping up their own income in retirement to helping family.”

He added: “The continued freeze on inheritance tax thresholds is likely to tip more estates into paying the tax but using property wealth to make living inheritances could provide homeowners with a means of mitigating the impact of inheritance tax and provide loved ones with extra financial support.”

Reasons over-55s use equity release

Home adaptations or improvements emerged as the leading reason for using equity release in 2025, with 43% of applicants citing this when applying – a substantial 10% uplift on the previous year, according to the Canada Life data.

Whilst clearing an existing mortgage remained a key motivation, 2025 marked the first year where it was no longer the leading reason for taking out equity release, dropping from 36% in 2024 to 27% in 2025.

The data also highlighted a marked increase in the number of people using equity release to establish an emergency savings fund – from 8% in 2024 to 21% in 2025.

The rise points to heightened financial caution, with more customers prioritising a safety net against unexpected expenses, possibly in response to economic uncertainty or personal health concerns.

Zaman from Canada Life said: “The range of uses for equity release underscores the importance of tailored, expert advice. Equity release may not be the solution for everyone, but advisers play a vital role in helping customers make informed, confident decisions about their financial futures in later life.”

How popular is equity release?

Equity release is increasingly popular. The equity release market grew 11% in 2025, according to the latest data from the Equity Release Council.

Total annual lending increased from £2.3 billion in 2024, to £2.57 billion in 2025. The Council’s market data is compiled from actual whole-of-market returns, making it the UK’s definitive equity release data.

Lifetime mortgages make up more than 99% of the market. These mortgages let people borrow against their homes without making repayments unless they choose to. The loan and interest is paid when the customer dies or goes into long term care.

However while equity release is becoming more popular, it is not without its downsides. Before arranging your application, a regulated equity release adviser must explain all the risks of equity release.

These include the fact the cost of borrowing will eat into the remaining equity in your home if you choose not to make any repayments on your equity release loan. Also expensive early repayment charges will apply if you pay off the equity release loan earlier than the terms of the contract allow, which can be up to 15 years.

Coastal properties are often popular with retirees or those who want to escape the hustle and bustle of cities, but high house prices have been a deterrent for many.

However, this could be changing as fresh data reveals house prices dropped in some of the most popular seaside towns by as much as 6.9% in 2025.

Aberystwyth saw the biggest drop of 6.9%, with average prices sliding from £245,933 to £228,854.

This was followed by a drop in Tenby of 5.2%, with average prices falling from £220,673 to £209,122.

In fact, prices in 20 UK seaside spots fell by an average of 1% from £276,615 to £273,921 between November 2024 and November 2025, according to the analysis by property portal Property DriveBuy.

As well as Aberystwyth and Tenby, a number of other seaside locations in south east England suffered house price blows, Property DriveBuy found, including Hastings which experienced a drop of 4.5% from £253,440 to £242,112.

Average house prices in Bournemouth and Brighton fell by 3.8% (£323,774 to £311,416) and 2.4% (£417,876 to £407,919), respectively.

Steve Foreman, founder and chief executive officer of Property DriveBuy, said: “Seaside prices appear to have cooled following several years of exceptional demand starting during the coronavirus pandemic in 2020.

“However, these price drops do appear to be more of a correction than a long-term shift.

“As buyer confidence improves and mortgage rates continue to stabilise, we expect demand for seaside homes to stabilise.”

Credit: Property DriveBuy

Why did coastal locations struggle in 2025?

House prices in coastal areas tend to stay resilient because it’s harder for them geographically to expand, with large parts of their borders surrounded by the sea, limiting stock. Good transport links to other major centres can also prop up prices in seaside spots.

So why did so many seaside spots slide in 2025?

Foreman, from Property DriveBuy, said one of the causes was a “renewed pull towards city living” which has increased after the coronavirus pandemic, when large swathes of buyers fled urban centres for coastal locations.

“As employers increasingly encourage a return to the office, and with job opportunities still heavily concentrated in cities, coastal living is beginning to look less practical, especially for younger buyers without fully flexible working arrangements,” Foreman explained.

At the same time, older second-stepper buyers “who traditionally underpin coastal demand, have been more cautious in recent years”, Foreman said.

Higher mortgage costs, caused by higher interest rates, and economic uncertainty have also dampened appetite in coastal areas, locations people typically target when upsizing.

However, Foreman argued the greatest factor in falling coastal house prices has been the “changing makeup of coastal communities themselves”.

“In many areas, local residents have been gradually priced out of ownership, temporarily releasing stock that might otherwise have been absorbed by first-time buyers.

“That gap was quickly filled by investors converting homes into short-term holiday lets. Over time, this has disrupted the natural rhythm of the local housing market, reducing turnover and weakening demand. Ironically, the result has been less market activity and, in some cases, downward pressure on prices."

House prices in popular city and countryside locations rise

If lower property prices on the coast aren't enough to persuade you to make the move, you’ll likely have to fork out more to relocate to the major city and countryside spots.

Prices across some city and countryside locations went up by as much as 8.5% between November 2024 and November 2025, according to Property DriveBuy.

Cities in northern England and Scotland dominate the upper-end of the list.

Prices grew from £170,536 to £185,023 (8.5%) in Liverpool, followed by Sunderland where they jumped from £133,948 to £143,824 (7.4%).

The average price of a home in Bradford rose from £176,550 to £187,242 (6.1%) while prices in Glasgow and Edinburgh increased from £181,424 to £191,884 (5.8%) and £280,753 to £296,878 (5.7%), respectively.

Prices in just two of the cities fell over the 12 month window – London (-1.2%) and Birmingham (-0.6%).

The top countryside locations saw prices go up by an average of 2.3% in the 12 months to November, Property DriveBuy found.

In Alnwick, the average price jumped from £195,519 to £211,838 (8.3%) while in Bangor it rose from £206,955 to £222,919 (7.7%).

Prices in Lewes fell from £378,536 to £369,070 (2.5%) and in Tetbury, where home prices plummeted from £469,121 to £429,773 (8.4%).

“I’ve stopped paying into my Lifetime ISA now. I don't think it's worth it,” a friend explained. The rest of the group, mostly renters in their early 30s, nodded in support as she explained her plight – the property cap (which has been frozen at £450,000 since the Lifetime ISA launched in 2017) is becoming more and more restrictive if you want to buy in London. The increasing likelihood of paying an effective 6.25% penalty on your hard-earned savings if your dream home exceeds this threshold makes the account much less appealing – putting money elsewhere gives you more choice.

I remember discussing the Lifetime ISA (LISA) when it first launched, almost a decade ago, with a group of friends who were long term renters in the capital. It was replacing the Help to Buy ISA, and the Lifetime ISA seemed to be a welcome improvement.

Each tax year, you can save up to £4,000 in a Lifetime ISA and get a 25% (up to £1,000) boost from the government. With the Help to Buy ISA, which you can no longer open, you can pay in £200 a month and also get a 25% top up, but the overall maximum bonus is £3,000.

I ran the calculations – if you could afford to max out your Lifetime ISA for more than three tax years, you would end up with a greater bonus via the Lifetime ISA. Plus the 25% boost is paid into your account the following month, rather than needing to be claimed when you come to purchase, so you can benefit from compound interest (you can hold cash and/or stocks and shares in Lifetime ISA).

To get the Help to Buy ISA bonus, the purchase price of a property is capped at £250,000, or £450,000 in London. With the Lifetime ISA, it’s a blanket £450,000.

When the Lifetime ISA launched in April 2017, the average UK house price was £220,094, according to HM Land Registry. In London, the average was £482,779. But as of November 2025, the average UK house price is £271,188, and £553,258 in the capital.

While house prices have risen, the Lifetime ISA cap has failed to keep pace. If it had been uprated, the limit would have grown to £575,550 according to AJ Bell calculations in February 2025. This restricts prospective buyers who face fewer affordable options that fall within the Lifetime ISA boundaries.

Plus, bizarrely, the £450,000 cap doesn't align with first-time buyer's relief on stamp duty land tax (SDLT) – which applies on properties costing up to £500,000. As a first-time buyer you pay no SDLT on the first £300,000 then 5% on the portion from £300,001 to £500,000. Surely it’s time to uprate the Lifetime ISA property value limit to be at least in line with this relief.

How Lifetime ISA withdrawals work

Lifetime ISA withdrawal rules are stringent. You can access the cash penalty-free if you’re buying an “authorised” property (you’re buying a property costing £450,000 or less, with a mortgage, using a conveyancer or solicitor and you first paid into the Lifetime ISA at least one year ago) or if you’re 60 or older. Otherwise, unless you’re terminally ill with less than 12 months to live, you will be charged 25% on withdrawals.

Let’s say you put in £16,000 over the years. With the £4,000 bonus, you’d have £20,000, assuming no growth. You then want to buy a property for £500,000, so withdraw the entire pot. As this is just over the Lifetime ISA cap, you would pay a 25% withdrawal charge of £5,000 – leaving you with just £15,000. This works out at an effective 6.25% penalty on your savings.

A withdrawal charge is understandable given the 25% top up is applied within the tax year, but cutting it to 20% would mean HMRC can recoup the bonus if it’s not used to buy a first home. We don’t need an entirely new ISA product for that – the rate was cut to 20% during the coronavirus pandemic.

The rumoured Lifetime ISA replacement

In the 2025 Autumn Budget, chancellor Rachel Reeves announced the government will publish a consultation in early 2026, on the “implementation of a new, simpler ISA product to support first time buyers to buy a home”. It’ll be offered in place of the Lifetime ISA. It’s promising news – Lifetime ISA reform is long overdue. But HMRC this week suggested the consultation will focus on launching a new product which removes the retirement saving aspect of Lifetime ISAs and the withdrawal charge.

It seems the new product, reportedly due to launch from April 2028, will return to the Help to Buy ISA model, where the bonus is applied when the property is bought. This should “be cheaper” for the government, but potential homeowners would lose out on the “investment growth earned on the bonus during the years they save for their first house”, Rachel Vahey, head of public policy at AJ Bell, points out.

It’s not yet known whether the property value threshold will be changed. I really hope it is. If it remains frozen, the government would be ignoring the main problem with the Lifetime ISA and missing a huge opportunity to genuinely help first-time buyers get on the property ladder amid rising house prices.

I believe the Lifetime ISA is a great product for prospective homeowners, but it’s failing because the property cap hasn’t kept up with house price growth. First-time buyers are being restricted to fewer options as property prices rise, and the frozen threshold is undermining confidence in the product. Why would you commit to locking your savings for a deposit in a Lifetime ISA if you were likely to lose a chunk of the money you put in to buy your first home?

Fixing this flaw by uprating the limit is a fantastic opportunity for the government to win support from millennials and Generation Z. Launching a new product which doesn’t address the frozen threshold would just be a huge waste of time and taxpayers’ money.