New data indicates that first-time buyers (FTBs) are taking out longer mortgages to help them move straight into their ‘forever home’.

 In August, a third (33.5%) of FTBs bought a semi-detached property, up 1.7% when compared with the same month in 2024. Meanwhile, only 19% purchased a flat, representing a 2.7% annual decline.

Millions of UK homeowners are choosing to renovate their existing home instead of moving.

 In England and Wales, about 1.7 million homes (one in 15 properties) have undergone significant renovation work. These homes are marked with ‘official improvement indicators’, showing that they have had major structural changes, such as an extension or loft conversion. Legally, Council Tax cannot be increased on homes with improvement indicators until the property is sold or there is a general revaluation of all domestic properties.

‍ ‍

Data from the Office of National Statistics shows that the average monthly mortgage repayment has surpassed £1,000 for the first time on record.

 In August, the typical monthly payment reached £1,002.27, indicating that, despite some cuts to Bank Rate over the last year, homeowners are still facing affordability challenges due to higher inflation. Less than a year ago, average repayments were below £950 and, in 2020, homeowners were paying an average of £680 per month. This sharp increase shows how much borrowing costs have risen in the last five years.

Data shows that the number of people buying a home with a Lifetime ISA (known as LISA) increased in the 2024/25 tax year.

 According to the statistics, 82,750 account holders withdrew money from their LISA to buy their first home, which is about 30,500 more than in the previous tax year.

Research has revealed the best UK commuter towns, offering lower house prices whilst being in proximity to major cities.

In July, the Labour government’s permanent Mortgage Guarantee Scheme became available, after the previous iteration supported over 56,000 mortgage completions.

 The old scheme, which ran from April 2021 to March 2025, was launched by Boris Johnson’s Conservative government. It helped 56,389 people to access mortgages with smaller deposits, with 3,180 completions in Q1 of this year.

Over 760,000 borrowers will be considering their mortgage options as their fixed-rate deals come to an end this year.

 Those with five-year deals about to expire may be anticipating sharp rises in their monthly bills; they will have fixed their mortgage in 2020, when interest rates were as low as 1.4%. Since then, rates have soared, meaning payments could increase by up to £300 a month.

A survey of homeowners has highlighted the savvy behaviours of today’s first-time buyers (FTBs).

 The report found that over half of FTBs are opting to buy a studio flat or a home with one or two bedrooms.

HMRC has warned buyers to be cautious of tax agents making false claims about Stamp Duty Land Tax (SDLT).

 Some homeowners have been wrongly advised that properties in need of repair are uninhabitable, so are eligible for non-residential rates of SDLT. Rogue agents are suggesting that, for a fee, they can secure a tax refund on behalf of the buyer. 

Over the last year, house prices have increased 5.3 times faster than the rate of earnings.

 The average house price has increased by £10,087 to £271,403. However, the typical annual salary has only gone up by £1,921 to £40,334. The East of England and the East Midlands have experienced the most significant disparity, with house prices outstripping earnings by 6.7 times. Scotland (6.4 times), Wales (6.3 times) and Yorkshire and the Humber were also significantly affected (5.8 times).

If you find it difficult to understand leasehold and freehold, you’re not alone.

 Research has found that leasehold is the UK’s most confusing property term, with the term generating over 160,000 Google searches in the last year. Freehold was second on the list, accounting for 114,000 searches.

It was a busy summer of news for the housing market – here’s what you need to know.

 In August, the Bank of England (BoE) reduced Bank Rate from 4.25% to 4%. This is the lowest level in two years and the fifth cut since August 2024. However, the decision wasn’t straightforward as the Monetary Policy Committee (MPC) required two rounds of votes to reach a majority. Ultimately, five members were in favour of lowering the rate, while four wanted to hold it at 4.25%.

House prices update

House price growth slowed to 2.1% in June, down 0.8% month-on-month. Performance varies significantly depending on the region, with Northern Ireland seeing the strongest growth of 9.7%. East Anglia was the weakest area, where house prices only increased by 1.1% annually.

By 2030, more than 104,000 Help to Buy accounts will reach the end of their interest-free period.

 The Help to Buy scheme ran for ten years, between 2013 and 2023. Buyers of new builds were lent up to 20% (or up to 40% in London) of the property’s value as an equity loan. The loan is interest-free for five years and is repayable when the home is sold.

The housing market seems to be regaining momentum, as sales are being agreed at the fastest rate in four years.

 The number of sales agreed was up 6% annually in June, which coincided with the stock of new property listings going up by 14%. This indicates that buyers are regaining confidence, with demand rising by 7%.

UK Chancellor Rachel Reeves is exploring major changes to property taxes. Proposals include shifting stamp duty so that sellers of homes worth over £500,000 pay it instead of buyers. Another idea is a capital gains-style tax on luxury property sales above £1.5m.

Data shows that remortgage activity hit a 15-month high in May. 

There were 41,500 remortgage approvals, up 6,200 on April and the highest level since February 2024. There was also a rise in new mortgages for the first time since December, with 63,000 approvals. Meanwhile, gross mortgage lending was £20.4bn in May, £16.9bn higher than the previous month.

Almost half a million homeowners coming off five-year fixed rate mortgage deals taken out in 2020 could see a major spike in their monthly mortgage repayments.

These borrowers have been paying an average interest rate of just 2.11%. However, if they revert to their lender’s standard variable rate (currently averaging 7.13%) when their deal comes to an end, their monthly repayments could soar to £1,227 on average, a jump of £510 a month or another £6,000 a year.

Rural house prices are still rising faster than those in towns and cities, according to Nationwide. While the pandemic-driven rush for countryside homes has eased, demand for space continues to support stronger growth in rural areas.

The number of UK homeowners with more than £300,000 left to repay on their mortgage has nearly doubled in the past seven years, highlighting the growing financial strain many are facing, amid high property prices and rising interest rates.

New analysis of the Financial Conduct Authority’s (FCA) Financial Lives Survey reveals that 9% of mortgage holders now owe over £300,000 – up from just 5% in 2017. In areas with the highest house prices, such as London and the South East, the proportion jumps significantly. Today, 28% of homeowners in these regions owe over £300,000, compared with 17% seven years ago.