Should I buy a house in 2026?
Buying or selling property is a major personal decision, influenced by your financial situation and life goals. However, understanding what the property market landscape could look like in 2026 can help you make an informed choice. Here, we outline key factors to consider when deciding if you should buy or sell a house in 2026.
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Whether you're entering the market for the first time or moving up the ladder, understanding your mortgage options is key. Discover what rates you could get without applying by creating a free, personalised plan from the UK's Best Mortgage Broker.
Will house prices go down in 2026?
It’s uncertain what will happen to house prices in 2026, but dramatic price drops look unlikely. With mortgage rates predicted to go down - albeit gradually - most predictions point towards continued, albeit conservative, house price growth. So it’s unlikely that many homeowner will reduce their asking prices significantly, unless their property is overpriced and isn’t selling.
However, an influx of new supply could help keep this growth in check. We may see more landlords and second-home owners selling their properties, which would increase the number of homes available. For buyers, this means 2026 may present opportunities to find more realistically priced homes. Doing your research and seeking insights into your local market will be crucial.
What will mortgage rates be in 2026?
Mortgage rates are a significant factor when calculating the cost of buying a home. Right now, it's predicted that mortgage rates could be lower than in previous years. But whether this happens or not depends on several factors, including inflation and the Bank of England's base rate.
If inflation decreases, the Bank should have more room to make cuts to the base rate, which would likely lead to lenders reducing their mortgage rates. While we are unlikely to return to the ultra-low rates seen in the past, even a gradual reduction can make a big difference.
Is 2026 a good year to buy a house?
Predicting the housing market is not an exact science, but clear trends are worth keeping in mind. House prices are expected to continue their trend of modest growth, while mortgage rates may offer some relief compared to previous years. Increased buyer demand, potentially driven by lower mortgage rates, could create a more competitive market. For those looking to sell, this could mean a better chance of achieving a good price.
For buyers, it signals the importance of being prepared. This means not only understanding your budget, but having the right team by your side so you can act swiftly when you find the right property. In a competitive landscape, being ready to make an offer quickly can be the deciding factor between securing your dream home and missing out. At Tembo, your dedicated mortgage team will be by your side all the way to getting your keys, helping you move quickly.
On average we boost budgets by £88,000!
At Tembo, we specialise in finding innovative ways to make home happen. Whether that's helping first-time buyers make their first step onto the ladder, to second-steppers affording their forever home. Discover what options are available to you and how you could boost your budget by creating a free Tembo plan today.
Should I buy a house in 2026 or wait until 2027?
Deciding whether to buy now or wait depends entirely on your personal finances, living situation, and goals. As ever, there are arguments for both. For first-time buyers, buying sooner means you can start building equity earlier. Currently, buyers are in a reasonably strong position. Mortgage affordability has improved, and if rates do come down as expected, getting on the ladder could become even more affordable.
Even if prices rise slightly, the increase is expected to be in the single digits. This balanced market puts prospective homebuyers in a good position to take their time and find the right home without the pressure of a rapidly escalating market.
However, on the flip side, waiting until 2027 might mean access to lower mortgage rates, which could improve your affordability even more.
For home sellers, any increase in buyer demand driven by lower rates could make it easier to find a buyer and achieve a good price for your property.
As ever, buying when the time is right for you is better than waiting for the “perfect” moment - as this is nearly impossible to predict.
Top tips for first-time buyers:
Start saving now
Even with potentially lower rates, you will still need a healthy deposit. The larger your deposit, the better the mortgage deals you'll be able to access as a larger down payment reduces the amount you need to borrow. It also shows lenders you are a less risky borrower.
Improve your credit score
Lenders offer the best rates to borrowers with strong credit histories. Your credit score demonstrates your track record of paying back debts on time. Take steps now to check your score with credit reference agencies and make any necessary improvements.
This could involve paying off existing debts, closing unused accounts, and ensuring you are on the electoral roll.
Discover your true buying budget
Before you start viewing properties, you need to understand what you can realistically afford. This includes not just the property price but also monthly mortgage payments.
By creating a free Tembo plan, you can discover your true affordability and explore ways you could even boost your budget.
Top tips for second-time buyers:
Price realistically
Remember that a home is only worth what someone is willing to pay for it. An overpriced home will struggle to attract interest and may sit on the market for a long time. Work with a trusted estate agent to set a competitive asking price based on recent sales and current conditions in your local area.
Wondering whether you should overpay on your mortgage? Read our guide.
Get your home ready
First impressions count. Make any necessary repairs or improvements well in advance to ensure your property stands out from the competition. A fresh coat of paint, a tidy garden, and decluttered rooms can make a significant difference without a huge investment.
Know your next move
Before you put your home on the market, have a clear plan for what comes next. Are you buying another property? Do you know your budget and what you can afford? Understanding your own financial position and housing needs will put you in control of the process and reduce stress once you accept an offer. Create a Tembo plan to discover your buying budget
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