Is now a good time to buy a house?
Higher housing supply may make it cheaper to get on the property ladder in 2026 but there are other factors to consider
House price growth has been slow in the first half of 2026, but that doesn’t necessarily mean now is a good time to buy a property.
So far this year, the housing market has been impacted by the war in Iran.
Mortgage rates have climbed, inflation remains above the Bank of England’s target and is expected to rise to over 3% this year, while stamp duty costs are high.
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The latest Lloyds House Price Index shows average house prices rose in June for the first time since the start of the Iran war in February. Property prices edged up by 0.2%, meaning the average house in the UK now costs £299,330.
But despite the month-on-month increase, average house prices are still just under £2,000 lower today than they were in February, Lloyds said.
And with hostilities between Iran and the US reignited, economic uncertainty seems set to continue impacting the housing market.
What is the property market like right now?
The latest Lloyds House Price Index for June shows a mixed picture.
Although June saw a small recovery for house prices, whether this will continue may depend on wider economic forces – inflation, interest rates, mortgage rates, and more.
The regional picture is also mixed. While Northern Ireland saw strong house prices growth of 7.4% over the past year, other areas have fallen behind.
This is especially true for the property market in southern England. House prices in the south east have fallen by 2% year-on-year, while prices in London have fallen by 1.1% in the same period, according to Lloyds.
There is also a glut of housing stock on the market now, meaning sellers need to work harder to attract buyers.
Meanwhile, the cost of borrowing has not improved in the last six months. The Iran war has meant the Bank of England has kept interest rates at 3.75% this year.
What’s happening with mortgage rates?
The average two-year fixed rate mortgage is 5.62%, according to Moneyfacts on 29 July. That is higher than the 5.54% it was last month, and much higher than the 4.83% it was on 27 February, the day before the Iran war broke out.
Mortgage rates are rising as swap rates, the wholesale cost of borrowing for banks and lenders, have increased in recent weeks as banks respond to the economic shock expected from the Iran war.
Lenders price their mortgage products off where swap rates are, meaning that when they rise, so will mortgage rates.
Is now the right time for you to buy?
The market is currently more favourable to buyers as average house prices have largely plateaued and there is a lot of stock to choose from.
Slower house price growth is generally good for buyers as it may make a property you want more affordable, especially if your own wages are rising faster than house prices.
This being said, some of the benefits may be offset if you need to sell your current house to buy your next one as slower house price growth may limit your own purchasing power.
There are also high levels of housing stock in the UK at the moment, making it a buyer’s market. As there are more houses to choose from, buyers have more room to negotiate on price, or have more options to choose from.
In the first quarter of 2026, the average home sold for 3.5% below asking price (around £18,800 less) as sellers repriced their homes to draw in offers, according to data from Zoopla.
On the other hand, the cost of credit is relatively high at the moment, and up from this time last year. That makes monthly mortgage payments more expensive.
While market conditions seem broadly favourable at the moment, you’ll need to consider your personal circumstances before you purchase.
For instance, do you have enough savings to put down a deposit? Check whether you can comfortably afford the monthly mortgage on your property.
You also need to have enough of a safety net available to be sure that you can still afford your home if you lose your job and your income reduces for a few months.
Building a robust property deposit, and keeping emergency savings on hand, should help shelter you from this risk.
Most people advise that you should aim to have three to six months’ worth of essential expenses in an easy-access savings account, ideally with a competitive rate of interest, which can help protect you from unexpected expenses.
It’s also worth doing the maths to understand what your monthly outgoings are likely to look like once you have completed a property purchase. Factor in any potential bill hikes, and plan for how you would manage if you were to experience a shock event like redundancy.
If you have accounted for these costs, you have the money and you are ready to go, then there is no need to hold back.
But if you are unsure and feel that buying now would stretch your monthly income to the max and leave you with limited emergency savings, it is probably better to wait. You might want to build up a larger deposit, negotiate a pay rise, or wait until mortgage rates are lower.
Five vital questions for property viewings
If you’ve decided to go ahead with buying a house or flat, it’s important to take your time during property viewings and ask lots of questions.
According to St. Modwen Homes' property expert Alison Maclean, there are five overlooked questions that could save house-hunters a small fortune:
What’s lurking in the loft?
Rodent droppings, old asbestos insulation, and dodgy DIY wiring can all be hiding in plain sight. So, during your visit, ask when the loft was last inspected and whether it's been properly insulated – and don’t be afraid to request access during your second viewing.
How old is the boiler – and when was it last serviced?
Boilers typically last 10–15 years, and a full replacement can cost thousands of pounds. So, if the boiler is towards the end of its lifetime, it’s worth negotiating on price – or asking for it to be replaced before completion.
Read more: ‘I replaced a gas boiler with a heat pump - here are five things I’ve learnt’
What’s the parking situation really like?
A designated space on the listing doesn’t always guarantee stress-free parking. Ask neighbours or check during peak hours to see how crowded the street gets – especially if the property is near a school or high street.
What is the EPC?
The Energy Performance Certificate rates a property's energy efficiency on a scale from A (most efficient) to G (least efficient) and gives an indication of how much it will cost to heat and power the home. Energy bills are rising, so taking a look at the EPC can provide insight into the potential running costs of the home.
What’s the broadband speed and mobile signal like?
Hybrid working is here to stay, and digital connectivity is more important than ever – yet it’s one of the most commonly overlooked details when buying a property. Check speeds using broadband checker tools, and ask the current owner about blackspots or dropped calls.
