Is Now a Good Time to Buy? A Plain English Look at the Housing Market

The average UK house price is £268,132 according to the ONS UK House Price Index for March 2026, the most recent official figure. Prices are broadly flat year on year, having risen rapidly in 2021 and 2022 and then levelled off.

There is a significant regional split. The average in the North East is around £149,000. In London, it is around £526,000.

First-time buyers in London are now looking at average purchase prices above £500,000 for the first time, according to Zoopla data from May 2026.

The average two-year fixed rate is 5.68% and the average five-year fixed rate is 5.63%, according to Moneyfacts data from June 2026. These are materially higher than the sub-2% deals available in 2021, but have come down from the peak above 6% seen in 2023.

The Bank of England base rate currently sits at 3.75%. Rates spiked earlier in 2026 following geopolitical uncertainty but have since edged lower.

Whether they fall further in the second half of 2026 depends on how inflation and global events develop.

House prices are flat, which means you are not buying into a rising market at risk of immediate falls.

You have time to make an offer and negotiate, which was not true in 2021 when properties were being snapped up in days.

In many parts of the UK outside London and the South East, monthly mortgage payments on a typical first-time buyer property are still cheaper than renting an equivalent home. In cities like Manchester, Liverpool, and Newcastle, buying with a 5% deposit can genuinely cost less per month than renting.

Every month you continue renting is a month you are building equity for someone else. A year of rent at the UK average of £1,377 per month is over £16,000.

If you are in London or the South East, the maths is harder. Monthly mortgage payments on a typical property in those areas can exceed average rents, sometimes by several hundred pounds.

There is no rush to buy if renting is significantly cheaper and you are using the time to build a larger deposit.

If your income is uncertain or you expect significant life changes in the next few years, the flexibility of renting has a value that does not show up in a monthly comparison.

There is never a universally good or bad time to buy. There is only your situation.

If you have a stable income, a deposit saved, and plan to stay in a property for at least five years, the case for buying is generally stronger than the case for waiting. Property held over the long term has historically increased in value, though past performance is not a guarantee of future results.

If you are trying to time the market, the odds are not in your favour.

Buyers who waited for prices to fall in 2023 often found that any price reduction was offset by higher mortgage rates. These things move together in unpredictable ways.

Make the decision based on your finances, your life plans, and the area you want to buy in.

Use our Mortgage Calculator to see what buying looks like for your numbers.

Sources: ONS UK House Price Index March 2026; Moneyfacts June 2026; Zoopla House Price Index May 2026; ONS Private Rent and House Prices May 2026; Rightmove Rental Market data April 2026. This article is for information only and does not constitute financial advice. Property values can fall as well as rise.