FINANCE
Choices and challenges With record-breaking numbers of homes coming on to the market, how can first time buyers take advantage of an abundance of choice while navigating a difficult climate? Kay Hill has some tips
Stricter regulation for landlords had already led to the private rental sector decreasing in value by £48bn in 2025, according to Savills, and the arrival of the Renters’ Rights Act in May has prompted even more landlords to put their rentals up for sale – offering great opportunities for first time buyers. Head of Residential Research at Savills, Lucian Cook, says, “We’ve grown accustomed to a story of the private rented sector expanding at the expense of people’s ability to get on to the housing ladder. But while deep-seated housing challenges remain, lighter regulation in the mortgage market and tighter oversight of the private rented sector are gradually beginning to shift that narrative.” So how can buyers take advantage of the situation? Well firstly, as you don’t have a property to sell you are going to be attractive to buyers, especially exiting landlords. “Sellers are looking to sell their property as efficiently as possible, and chain-free buyers can reduce delays as they don’t have an existing property to sell,” says Karl McArdle, Co-Founder of The Property Buying Company. “Highlighting
It’s an irony that won’t be lost on any first time buyer, that at the very moment the market was flooded with property for sale, so the flow of affordable finance suddenly dried up. Hot on the heals of a report from Zoopla at the end of February reporting the most homes coming on to the market in that month in a decade, came chaos in the Middle East – and in the mortgage market. In the space of 48 hours following the outbreak of war, nearly 500 mortgage deals were pulled, with 1,500 products disappearing in a matter of weeks and the average two-year fixed rate jumping from 4.83% at the start of March to 5.84% at the end of the month, according to Moneyfacts. At one point, the chaos was so bad that TSB raised mortgage rates twice in just 24 hours. Although the situation has stabilised slightly, the Bank of England’s subsequent decision to hold the base rate rather than the anticipated drop, along with continuing volatility in the mortgage market, might make first time buyers cautious about entering the fray. However, the fact remains that there is a lot of good
EXPERT COMMENT
Escalating tensions in the Middle East have up-ended in ation and interest rate expectations, something that could dampen demand if buyers nd it harder to secure the mortgages they need. Stock levels have increased since the start of the year, and mortgage approvals rose by almost 4% in February, driven by buyers who began the purchase process before the con ict unfolded. At that stage, affordability was improving, helped by easing in ation, softer mortgage rates and expectations that the Bank of England would deliver its seventh interest rate cut since August 2024 imminently. The outlook has shifted dramatically. Instead of cutting rates, the BoE held the rate at 3.75%. The property market could be impacted if more buyers struggle to secure the level of borrowing they need. Sellers may need to price realistically to secure a sale as buyers face the dual challenge of higher borrowing costs and reduced purchasing power. Anyone securing their rst home loan would be wise to seek guidance from an independent broker who can scour the whole market. Once a product is secured, it is crucial to stay in close contact with your broker, particularly if conditions improve, as they can often switch you to a better rate right up until two weeks before the term begins.
this position can help you to stand out as a more reliable purchaser
value property on the market, and this could be the moment to grab a bargain.
Alice Haine , Personal Finance Analyst, Bestinvest by Evelyn Partners
114 First Time Buyer June/July 2026
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