Is now a good time to buy a house?
Interest rate cuts and booming housing supply may make it cheaper to get on the property ladder in 2026 but there are other factors to consider
Slower house price growth may make moving on or up the property ladder cheaper this year but transaction costs remain high.
The housing market faced plenty of turbulence in 2025 with changes to stamp duty thresholds in the first months of the year and concerns about tax rises ahead of the Autumn Budget.
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What is the property market like right now?
- The property market is more positive for buyers than sellers right now
- There are plenty of new houses for sale, while house prices are steady
- Changes to stamp duty thresholds in April 2025 and political and economic uncertainty may be deterring buyers
Slower house price growth may make moving on or up the property ladder cheaper this year but transaction costs remain high.
The housing market faced plenty of turbulence in 2025 with changes to stamp duty thresholds in the first months of the year and concerns about tax rises ahead of the Autumn Budget.
An interest rate cut in December 2025 has raised hopes that the cost of borrowing could come down, boosting buyer demand.
There are factors that are working in favour of homebuyers.
Data from property website Rightmove shows the number of new homes for sale is at an 11-year high, pushing house price growth lower.
But interest rates have been frozen since and mortgage rates have been climbing as swap rates rise amid worries about the economy and geopolitical tensions, particularly in the Middle East,
Inflation also remains above the Bank of England’s target, hitting buyer budgets, while stamp duty costs are high.
This means that even though house price growth is slowing, helped by increased supply, higher costs are still hitting demand.
What’s happening with mortgage rates?
- The average two-year fixed rate mortgage is 4.83% as of 3 March 2026
- Mortgage rates have eased but may not change drastically in the short term
- The Bank of England's MPC held interest rates in February after a cut in December
In its latest meeting on 5 February 2026, the Bank of England’s Monetary Policy Committee (MPC) voted to hold interest rates at 3.75% by a slim margin of 5-4.
The MPC did say that “on the basis of the current evidence, Bank Rate is likely to be reduced further. Judgements around further policy easing will become a closer call.”
They added that the extent and timing of potential future cuts will be subject to the outlook for inflation.
Further cuts are expected in 2026 if inflation continues to slow but the Bank of England has been cautious on the timeline.
Average mortgage rates have finally fallen back below 5%, with a typical two-year fix at 4.83% and a five-year deal at 4.95%, according to Moneyfacts.
Lenders are getting creative with their products as well with more relaxed affordability criteria and some 100% loan-to-value mortgages on the market.
Is now the right time to buy for you?
- Before looking for new houses for sale, check your financial position
- Consider how you’ll afford the deposit, mortgage and bills (and factor in inflation)
- Ask how you’d cope with the cost of a new home if your job or health changed
Slower house price growth is good for buyers as it may make a property you want more affordable, especially if your own wages are rising.
But it may not be as positive if you are also selling to trade-up as this may limit your own purchasing power.
The high levels of available housing stock has made it a buyer’s market, meaning there may be more room for negotiation to get a reduced price.
As well as raiding your savings for a deposit or relying on family for help, prospective buyers will need to weigh up whether they can afford monthly repayments – particularly in light of rising costs elsewhere.
While inflation is far from the sky-high levels during the worst of the cost of living crisis in 2022, price growth has remained stubbornly high, meaning your money is worth less in real terms.
The big unknown when it comes to buying a home is your own financial position.
Will you still be able to afford your home if you lose your job and your income reduces for a few months?
Building a robust property deposit, and keeping emergency savings on hand, should help shelter you from more unsettling forces in the wider world.
Aim to have three to six months’ worth of essential expenses in a competitive easy-access savings account, which can help protect you from unexpected expenses.
It’s worth doing the maths to understand what your monthly outgoings are likely to look like once you have completed a property purchase. Factor in any potential bill hikes, and plan for how you would manage if you were to experience a shock event like redundancy.
If you have accounted for these costs, you have the money and you are ready to go, then there is no need to hold back.
But if you are unsure and feel that buying now would stretch your monthly income to the max and leave you with limited emergency savings, it is probably better to wait. You might want to build up a larger deposit, negotiate a pay rise, or wait until mortgage rates are lower.
Five vital questions for property viewings
- After searching for new houses for sale you’ll need to book property viewings
- Asking certain questions can reveal costly property problems before you buy
- Common property problems include parking, broadband, wiring, boilers and the EPC
If you’ve decided to go ahead with buying a house or flat, it’s important to take your time during property viewings and ask lots of questions.
According to St. Modwen Homes' property expert Alison Maclean, there are five overlooked questions that could save house-hunters a small fortune:
- What’s lurking in the loft? Rodent droppings, old asbestos insulation, and dodgy DIY wiring can all be hiding in plain sight. So, during your visit, ask when the loft was last inspected and whether it's been properly insulated – and don’t be afraid to request access during your second viewing.
- How old is the boiler – and when was it last serviced? Boilers typically last 10–15 years, and a full replacement can cost thousands of pounds. So, if the boiler is towards the end of its lifetime, it’s worth negotiating on price – or asking for it to be replaced before completion.
Read more: ‘I replaced a gas boiler with a heat pump - here are five things I’ve learnt’ - What’s the parking situation really like? A designated space on the listing doesn’t always guarantee stress-free parking. Ask neighbours or check during peak hours to see how crowded the street gets – especially if the property is near a school or high street.
- What is the EPC? The Energy Performance Certificate rates a property's energy efficiency on a scale from A (most efficient) to G (least efficient) and gives an indication of how much it will cost to heat and power the home. Energy bills are rising, so taking a look at the EPC can provide insight into the potential running costs of the home.
- What’s the broadband speed and mobile signal like? Hybrid working is here to stay, and digital connectivity is more important than ever – yet it’s one of the most commonly overlooked details when buying a property. Check speeds using broadband checker tools, and ask the current owner about blackspots or dropped calls.
