Buying your first home is rarely straightforward, and 2026 is no exception. There are genuine reasons to feel more optimistic than you might have done two years ago, but there are also real pressures that deserve an honest look. This guide sets out both sides so you can make a more informed decision about your own timing.
What has improved
Mortgage rates are no longer at the painful peaks seen in 2023. While rates are still higher than the historic lows of 2020 and 2021, the gradual easing has brought monthly repayments back into reach for more buyers. At the same time, the Financial Conduct Authority has adjusted its affordability rules, meaning many borrowers can now access roughly 10% more in lending than they could under the previous stress-test framework. That is a meaningful shift for buyers who were previously falling just short.
First-time buyer activity is running around 20% above 2024 levels, which suggests that confidence has returned to a fair portion of the market. Supply has also improved: more homes are listed for sale right now than at any point in the last 11 years. More choice means less pressure to rush, and in some areas it has given buyers more room to negotiate on price.
The genuine challenges
The average asking price for a first-time buyer property nationally sits at around £254,750. In London, the entry-level threshold has crossed £500,000, which puts ownership out of reach without a very large income, substantial help, or a long commute out of the capital.
A 10% deposit on a typical first-time buyer home still takes close to six years to save for the average renter, once rent, bills, and everyday costs are accounted for. Over a third of recent first-time buyers needed family help with their deposit. That is not a criticism of anyone who takes that route, but it does reflect a structural problem: the market remains significantly easier to enter if you have access to family wealth.
Energy costs are another factor that buyers sometimes overlook. Lenders now factor rising household bills into their affordability assessments more carefully than they did a few years ago. A property with a poor energy rating (EPC band D or below) may reduce how much a lender is willing to offer you, because the running costs are higher. It is worth checking the EPC of any property you are seriously considering.
Government-backed routes worth knowing
Two schemes remain available to first-time buyers in 2026.
- Shared Ownership lets you buy a share of a property (typically between 10% and 75%) and pay rent on the remainder. You can buy more shares over time, a process called staircasing. It can be a practical route into ownership when full purchase is out of reach, but make sure you understand the lease terms and any service charges before committing.
- Lifetime ISA (LISA) allows you to save up to £4,000 per year and receive a 25% government bonus, up to a maximum bonus of £1,000 per year. It can be used toward a first home worth up to £450,000. Be aware that withdrawing the money for anything other than a first home purchase or retirement triggers a penalty that eats into your own savings. A Treasury consultation on a potential replacement scheme is currently underway, so it is worth keeping an eye on any announcements if you are planning around the LISA long-term. Speak to a financial adviser about whether it suits your situation.
Practical steps before you start viewing
The single most useful thing you can do before attending any viewing is speak to a mortgage broker. A broker can assess your borrowing position across multiple lenders, not just one bank, and can tell you realistically what you can afford before you fall in love with something out of reach. Getting an Agreement in Principle (a written indication from a lender of how much they would lend you, subject to full checks) also makes you a more credible buyer in a seller's eyes.
Once you have an offer accepted, commission a homebuyer survey. A basic valuation is carried out for the lender's benefit, not yours. A HomeBuyer Report or full structural survey will flag problems with the roof, damp, or subsidence that you would otherwise only discover after moving in. The cost is small relative to what those repairs might be.
If a property has been sitting on the market for several weeks or months, that is useful information. Speak to the agent about why it has not sold and consider making an offer below the asking price. Sellers who have been waiting a while are often more open to negotiation than those who listed last week.
Finally, budget for costs beyond the deposit: solicitor fees, survey, mortgage arrangement fees, removal costs, and any immediate work the property needs. First-time buyers in England currently pay no Stamp Duty on properties up to £300,000, with a reduced rate up to £500,000, but ask your solicitor to confirm the current thresholds at the point you are ready to buy, as these figures can change.
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