After several turbulent years for the housing market, 2026 is emerging as one of the most stable periods for first-time buyers in recent memory.
That is the assessment of Sharon Duckworth, founder and director of Key Mortgage Advice, who has advised buyers across Preston, Southport and Garstang since launching the firm in 2001.
Following a period marked by sharp interest rate increases, affordability strain and intense competition for properties, Sharon says the tone of the market has shifted noticeably.
“We’re quietly optimistic about 2026 for first-time buyers. Affordability pressures haven’t vanished, but the market feels more balanced than it has in years and that creates opportunity for buyers who are well-prepared rather than rushed.”
Rather than a sharp correction, Sharon describes a market that has gradually found its footing. Interest rate movements have steadied compared to previous volatility. House price growth appears more measured. Competition in many areas is less aggressive than during the post-pandemic surge.
For first-time buyers, that combination changes behaviour.
Less Urgency, More Negotiating Power
In highly competitive markets, properties often attracted multiple offers within days. In recent years, buyers have been pushed to secure agreements in principle quickly and, in some cases, increase offers to secure a purchase.
That intensity has eased, according to Sharon.
“For the first time in a while, first-time buyers aren’t competing against quite so much urgency. That shift alone can make a big difference, particularly for those buying with smaller deposits.”
Reduced urgency gives buyers time to review survey results, consider long-term affordability and negotiate where appropriate. It also lowers the risk of overstretching financially simply to compete.
For buyers entering the market for the first time, many of whom have spent years saving a deposit, the ability to proceed at a measured pace is significant.
Stability In Rates Supporting Confidence
Interest rates remain central to the first-time buyer conversation. While rates remain above the historic lows seen earlier in the decade, recent stabilisation has improved confidence.
“Even small reductions or stabilisation in interest rates can have a disproportionate impact on first-time buyers,” Sharon says. “Because it improves both monthly affordability and borrowing confidence. We’re already seeing buyers feel able to plan rather than panic.”
When rates rise rapidly, buyers often delay decisions. When movements slow, forward planning becomes more realistic. But Sharon cautions against focusing solely on headline figures even though there are more options.
“What matters most for first-time buyers isn’t chasing the perfect rate. It’s understanding how rates, term length and future flexibility work together. 2026 looks far more favourable for having those considered conversations.”
Fixed rate mortgages remain popular among first-time buyers seeking predictability. Term length and flexibility around future changes are also key considerations. A steadier environment allows those discussions to happen without external pressure dominating the decision.
House Prices Moving at a More Sustainable Pace
House price growth is another factor in buyer confidence. Rapid increases can inflate deposit requirements and raise concerns about affordability.
Current conditions appear more moderate.
“We don’t expect runaway house price growth in the short term, and that’s actually positive for first-time buyers,” continues Sharon. “A steadier market gives people time to negotiate properly and make decisions that suit their long term finances, not just today’s headlines.”
A slower rate of growth reduces the risk of buyers feeling permanently priced out. It also allows savings to keep closer pace with property values.
In practical terms, this creates an environment where suitability and affordability can take precedence over speed.
Lender Innovation Expanding Options
Deposit levels remain a major barrier. Saving 5 or 10 percent of a property’s value can take considerable time, particularly for renters balancing rising living costs.
Many lenders continue to offer products at 5 percent and 10 percent deposit levels, subject to criteria and affordability assessments, but those aren’t the only options available.
Criteria differ between lenders, particularly around income structure, bonuses, overtime or self-employed earnings. That variation can mean buyers who assume they will not qualify may have options available.
“Lenders have become far more innovative when it comes to supporting first-time buyers, whether that’s with lower deposit products, extended terms or flexible criteria. The choice available in 2026 is likely to be broader than many buyers realise.”
“Buying your first home can feel overwhelming, especially after years of negative headlines. But the reality is that many first-time buyers are far more mortgage ready than they think. They just need clarity and reassurance.”
Preparation Remains Central
More stable market conditions do not remove the need for preparation. Reviewing credit reports, understanding borrowing capacity and organising documentation remain fundamental steps.
“A calmer market tends to reward buyers who are organised. Having a mortgage agreement in principle and clear advice can genuinely put first-time buyers in a strong position with sellers.”
An agreement in principle clarifies the budget before property searches begin and can strengthen an offer when negotiating.
Buyers entering the market without preparation may still face delays or disappointment. Those who approach the process methodologically are more likely to benefit from the current conditions.
A More Predictable Entry Point
Housing markets are always subject to change. Interest rates can move. Lending rules can tighten. Individual circumstances differ.
Compared with the volatility of recent years, 2026 presents a more predictable backdrop. Rate movements have slowed. House price growth is less aggressive. Competitive pressure has eased in many areas. Product choice remains broad.
Taken together, those factors point to a year where first-time buyers may find conditions more manageable than at any point in recent memory.
Sharon’s assessment is cautious but clear.
“For first-time buyers who take the time to understand their options and plan ahead, 2026 could be one of the most sensible entry points into the property market we’ve seen in quite some time.”
Local Support For First-Time Buyers
If you are considering entering the property market this year, the most sensible step is to start the conversation early.
At Key Mortgage Advice, we support first-time buyers across the North West with clear, straightforward guidance. Whether you need help understanding your borrowing potential, securing an agreement in principle, or comparing products from across the market, our team is here to help.
We can advise on:
To arrange a free, no obligation consultation call us on 01772 620000, email us at enquiries@keymortgageadvice.co.uk, or fill in our online contact form.
