We’ve seen a fast-moving start to the year in the property market, with conditions shifting much more quickly than many expected.
Early 2026 began on a more stable footing, with signs of growth returning to the market. Buyer demand picked up, supply improved and mortgage rates dipped. This was reinforced by data from Rightmove, which showed January recorded the largest asking price increase in that month across its 25-year dataset.
Six weeks later, conditions changed.
US and Israeli strikes against Iran on 28th February pushed energy prices higher, feeding into inflation expectations and driving up swap rates, the rates lenders use to price fixed mortgages. Lenders pulled some of their lowest-priced products and repriced quickly, with cheaper deals gone within weeks of appearing. Mortgage rates rose sharply through March, reversing much of the improvement seen at the start of the year.
The speed of the change caught many buyers off guard and brought back a level of uncertainty about what may happen next.
What we’re seeing now isn’t buyers disappearing, it’s buyers pausing – the intent is still there, but people are taking longer to commit because of how quickly conditions have changed.
First-time buyers feeling the pressure
First-time buyers tend to carry the most pressure. They rely on higher loan-to-value (LTV) mortgages, so even small increases in rates have a bigger impact. A typical 10% deposit on a lower-to-mid value property is around £20,000 to £30,000 nationally, and significantly more across much of the South.
When mortgage pricing moved upwards again in March, it immediately changed what many could afford, and also brought a renewed level of hesitancy to those who were preparing to enter the property market.
The market is still moving
With the uncertainty, the market is moving more cautiously, but it is holding.
Prices rose again in March according to Rightmove, and while Zoopla reports buyer demand is down 13% year-on-year, much of that reflects how unusually busy last spring was, with buyers rushing to beat the stamp duty deadline. The underlying market is still moving.
Timing the market
Many buyers feel they need to wait for the perfect moment, lower rates, lower prices, more certainty, but in reality that often just delays a decision. The perfect moment rarely arrives in the way people think it will.
What matters more is whether the numbers work for you today and stay sustainable over time. Waiting can sometimes make things harder rather than easier, whether that’s through rising rents, higher deposits or more competition when things do improve.
The opportunity
What’s challenging for some buyers is an opportunity for others. Higher rates have made affordability tighter, but they’ve also taken some of the heat out of the market. With more choice and less competition, this is a better environment for buyers who are well-positioned, those with strong deposits, equity behind them, or finances already lined up.
For homeowners coming off a fixed deal, speaking to a broker or lender well before it ends gives you more options and more control. In many cases, you can secure a new rate several months in advance, typically three to six, which can help protect you from further changes before your current deal expires. If rates improve in the meantime, there may also be an opportunity to switch to a better deal, either with the same lender or a different one.
The property market continues to reward people who plan properly and think long term. What’s changed is that decisions need to be grounded in today’s conditions, not a version of the market that may not come back in the same way. If the numbers work now and they work sustainably, there’s no good reason to wait.
Michelle Niziol is the founder and CEO of IMS Property Group