Analysis from Moneyfacts shows how borrowers’ priorities have shifted due to the economic impact of the Middle East conflict.

Mortgage rates have been fluctuating since March and the short-term economic outlook is still unpredictable. As such, borrowers are increasingly looking for more flexible mortgage deals in the hope that rates will come down soon.

Research from Yopa indicates that the majority of buyers are looking for homes that require little to no work.

According to the survey, 54% of people who bought a home in the last year were only prepared to make minor cosmetic changes to their new home. Meanwhile, 23% were looking for a fully modernised ‘turnkey’ property that was ready to live in.

New analysis from Stonebridge suggests remortgage activity surged during the opening months of 2026 as borrowers reached the end of ultra-low fixed rate mortgage products arranged during the pandemic.

Sharp rise in applications

Stonebridge data shows that remortgage applications increased by 45.8% during Q1 2026. The rise comes as many homeowners are reaching the end of fixed rate products arranged when borrowing costs were significantly lower.

Calls for Stamp Duty reform are continuing to grow as first-time buyers face rising purchase costs.

Research suggests first-time buyers have paid an extra £307m in Stamp Duty since the tax-free threshold changed in April 2025. On average, buyers have reportedly paid £4,618 more to complete a purchase over the past year.

Many prospective buyers feel ready to move in 2026, but affordability concerns and uncertainty are still causing hesitation.

Confidence versus action

Research shows that 52% of prospective buyers believe they are ready to purchase a property this year. However, there remains a significant gap between confidence and actually making a move.

High property prices and the challenge of saving for a deposit continue to be major barriers for many households. Rising living costs and uncertainty around mortgage affordability have also made it harder for some buyers to feel financially prepared.

For first-time buyers in particular, balancing rental costs with saving for a deposit continues to be a significant challenge, despite improving confidence across parts of the housing market.

For many people, buying a home is one of the biggest financial commitments that they will make. But house hunting is not just about getting the price right; you also need to be confident that the property and location is right for you and your lifestyle. Here are some factors to consider when making your move.

House prices picked up in March, with annual growth rising to 2.2% according to Nationwide. This is an improvement on February, when prices rose annually by 1.0%. The average house now costs £277,186.

Mortgage rates are in a state of flux in response to the Middle East conflict, which is a constantly evolving situation.

Mortgage rates were on the rise at the start of April, with over 30 lenders increasing their rates and withdrawing some products from the market. However, by the end of the month, lenders had started to make cuts again.

Many hopeful homeowners could be closer to getting on the property than they realise, but they are underinformed about their mortgage options. 

A survey by the Building Societies Association (BSA) has found that nearly half (47%) of people who want to buy a home have never spoken to a lender or mortgage broker. This means that many prospective first-time buyers (FTBs) don’t fully understand what’s available, so could be missing out on an opportunity to become a homeowner.

Recent research has found that half of UK homes increased in value last year.

According to Zoopla, 15.2 million properties gained value by an average of £9,900 in 2025. Within this group, 3.1 million homes saw particularly strong growth, rising by more than £20,000. In contrast, 9.1 million households saw a decrease in value by an average of £10,800.

The mortgage market is facing uncertainty due to ongoing developments in the Middle East.

Affordability challenges had been easing slightly in recent months - mortgage rates were slowly coming down due to cuts to Bank Rate. In January 2026, the average monthly mortgage payment was 7% lower than the previous year.

Research from Rightmove has identified the UK towns that recorded the strongest house price growth last year.

The list was largely dominated by towns in Scotland and the north of England. Hawick in the Scottish Borders saw the biggest annual rise, with prices increasing by 18% in 2025. Durham followed with a 15% increase, while Stannington in Sheffield saw prices grow by 12%.

Last year saw significant housing reforms for renters and homebuyers – here’s a recap of what you need to know.

Change to renters’ rights

The Renters’ Rights Act received Royal Assent in October 2025 and will come into force in three phrases this year. The initial phase of the rollout in May will include the much-awaited end to Section 21 ‘no fault’ evictions in England. Plus, all fixed term tenancies will automatically convert to periodic tenancies.

Data from the Financial Conduct Authority (FCA) indicates that more borrowers are opting for ultra-long mortgages in an effort to manage rising housing costs.

According to the analysis, in 2024 there were 116,276 mortgages taken out with repayment periods of 35 years or more. This is over three times the number sold in 2020, highlighting how borrowing conditions have changed significantly in recent years. As affordability challenges persist for buyers, longer mortgage terms help to reduce the cost of monthly repayments. While this can make finances easier to manage in the short term, it is more expensive in the long run.

End of year statistics for 2025 offer some reasons to be optimistic about the housing market.

According to Zoopla, house sales for 2025 hit 1.2 million, the highest level for three years. First-time buyers showed growing confidence as they accounted for 39% of transactions last year.

Meanwhile, house prices lagged last year, with the average house valued at £270,300 at the end of 2025. This is up 1.1% on the previous year but is lower than the 10-year average of 3.8% growth. Zoopla expects prices to rise by 1.5% in 2026 while Rightmove’s outlook is more positive, at 2%.

Research suggests that landlords may be forced to raise rents to account for tax hikes announced in the Autumn Budget.

From April 2027, landlords will face a 2% tax increase on their rental income - the basic rate of property income tax will rise from 20% to 22%, while the higher rate will increase from 40% to 42%. Those paying the additional rate will pay 47%.

Hoping to move or remortgage this year? Here’s how to get mortgage-ready in 2026.

Review your finances

Now that the busy festive period is over, why not take this opportunity to organise your finances. Go through your bank statements and identify where you can reduce your spending – not only will this help you save for a deposit, but it will make your mortgage application stronger in the eyes of a lender.

The start of a new year often prompts people to review their plans and for many, that might include a resolution to move home. As market conditions continue to evolve, prospective buyers and sellers might be wondering what will happen with property prices in 2026 and beyond.

A survey from LRG has revealed the three most influential factors when buying a property, excluding price and location.

 Updated kitchens and bathrooms were the important features, with 77% of respondents citing these as key influencers.

Data from the Bank of England shows that UK borrowers are currently favouring two-year fixed-rate deals.

 In Q2 of this year, half of new mortgages were two-year deals, with only 35% opting for five-year terms. Borrowers are probably hoping to remortgage to a cheaper deal if Bank Rate keeps falling over the next two years.