Is Now a Good Time to Buy a House?

Deciding whether to take that first step onto the property ladder is a major decision. The property market has moved into a phase of modest, stable growth, making the right time more about your personal readiness than trying to outsmart a volatile market. 

1. Mortgage rates are stabilising 

Following the Bank of England’s base rate shift to 3.75% in late 2025, mortgage products have largely found their floor. 

High-street lenders are now competing for business with 2-year and 5-year fixed rates often ranging between 3.5% and 4.3%. While rates may dip slightly further if inflation stays anchored, the era of sharp rate drops is likely behind us. For many, the security of a fixed payment now outweighs the gamble of waiting for a minor change later. 

2. A buyer’s market for choice 

There’s significantly more stock on the market compared to the inventory droughts of previous years. 

• Negotiation power – with more options available, first-time buyers have more leverage to negotiate on price, especially for homes with lower EPC ratings or those needing modernisation 

• Realistic growth – national house prices are forecast to grow by a modest 2% to 4% this year. This slow and steady pace is much friendlier for buyers than the rapid bidding wars of the past 

3. The tax landscape (SDLT and LTT) 

The temporary Stamp Duty thresholds officially ended in April 2025. You need to factor these fixed costs into your budget: 

• England and Northern Ireland – first-time buyers pay 0% tax up to £300,000. If your home costs between £300,001 and £500,000, you pay 5% on the portion above £300,000 

• Wales – there’s no specific first-time buyer relief. You pay Land Transaction Tax (LTT) on any property over £225,000, just like any other home mover 

For a fuller breakdown of costs, see our guide on what to save for besides a deposit. 

4. Rent vs buy: the affordability gap 

While rental price growth has slowed, it remains high. In many parts of the UK, a monthly mortgage payment is now comparable to, or even lower than local rents. Switching to a mortgage allows you to build equity in your own asset rather than paying off a landlord’s. 

Is it your right time? 

Market timing is a secondary concern if your personal finances are buyer-ready. You’re likely in a strong position to buy if: 

• Stable income – your earnings are steady and can pass the digital stress tests lenders use via Open Banking 

• Healthy deposit – you have at least 5–10% saved (though 100% Track Record mortgages remain an option for consistent renters) 

• Long-term view – you plan to stay in the property for at least 5 years, allowing you to ride out any minor market fluctuations 

For more on how lenders assess your finances, see our guide on how to work out what you can afford. 

Final Thoughts 

The best time to buy is when you find a home that fits your life and a budget that fits your bank account. Our conveyancing team at Setfords is here to handle the legal side – from navigating Green Mortgage requirements to managing leasehold protections – ensuring your move is as smooth as possible. 

Get your free conveyancing quote today.

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