Is now a good time to buy a house? Record rents, higher mortgage rates and the Autumn Budget

Buying vs Renting: Is now the right time to get on the property ladder?

With UK rents reaching record highs, mortgage rates remaining relatively expensive and the Autumn Budget approaching, is now a good time to buy a property? 

For most people, buying a home is a long-term decision. Predicting the perfect time to buy is extremely difficult, especially when mortgage rates, property prices, global factors, and government policies can change quickly.

However, buyers may benefit from a slower property market, greater choice and more opportunities to negotiate on asking prices. They can also take advantage of low- or no-deposit mortgages, higher income multiples, and cheaper tracker rates.

Is October 2026 a good time to buy a property?

October 2026 could be a good time to buy a house for people with stable incomes, sufficient deposits and affordable mortgage repayments. Although borrowing costs remain high, fixed-rate mortgages below 5% and cheaper tracker deals around 4% are still available to eligible borrowers.

Meanwhile, the number of properties for sale has increased, with Zoopla reporting 5% more homes available compared with a year ago. Sales agreed were down 9% year-on-year in September, potentially giving buyers greater negotiating power.

For people planning to stay in their property for ten or fifteen years, short-term movements in mortgage rates or house prices may be less important than finding the right home at an affordable price.

UK advertised rents exceed £1,400 per month for the first time

Rightmove's October 2026 rental figures show average advertised rents outside London have reached a record £1,418 per month, increasing by 1.5% over the quarter.

In London, average advertised rents have reached £2,825 per month.

Although annual rental growth outside London has slowed to 2.4%, compared with increases of around 10% between 2021 and 2023, renting remains expensive for many households.

These figures may encourage more tenants to consider purchasing their own property rather than continuing to pay rent.

Unlike renting, a capital repayment mortgage allows homeowners to gradually reduce their mortgage balance and build equity. However, buyers must also budget for maintenance, insurance, transaction costs and potential changes in property values.

Trinity Financial's brokers are still receiving enquiries from tenants who want to buy the property they rent. More landlords report that it is no longer financially viable to continue letting their properties because of increased taxes and the changes introduced by the Renters Rights Act. 

Are mortgage rates still affordable in October 2026?

Many two- and five-year fixed mortgage rates are around 5% or higher, although some banks and building societies have recently reduced their rates.

There are still fixed-rate deals below 5% for eligible borrowers, particularly those with larger deposits. Tracker mortgages can also have lower initial rates, although repayments could increase if the Bank of England raises interest rates. Two-year fixed rates are closer to 5.3% for borrowers with a 10% deposit. 

Some lenders are offering higher income multiples of five, six or occasionally 6.5 times salary, helping qualifying first-time buyers and home movers borrow larger amounts.

How much does a mortgage cost per month?

The following table illustrates mortgage repayments over 30 years at an assumed interest rate of 5%.

Mortgage amount	Monthly repayment
£200,000	£1,074
£250,000	£1,342
£300,000	£1,610
£400,000	£2,147
£500,000	£2,684

Source: Trinity Financial. Illustrative capital repayment figures, excluding mortgage fees and other homeownership costs. Click here to use our mortgage calculator. 

For example, someone paying £1,418 a month in rent could potentially have a similar monthly repayment on a £250,000 mortgage. However, they would also need a deposit if they did not want to take or qualify for a 100% mortgage, or have sufficient income to satisfy the lender's affordability assessment.

They could potentially take part of the mortgage on interest-only or extend the mortgage term to lower their initial costs, but this is often only a short-term measure because longer terms mean extra interest payments, and interest-only mortgages still need to be repaid. 

First-time buyers are proving more resilient than home movers

Research from Yorkshire Building Society, using CACI mortgage application data, suggests first-time buyers are remaining relatively active despite higher mortgage costs.

During the third quarter of 2026, first-time buyer mortgage applications declined by 3.5% year-on-year to 118,881, compared with a 10.2% decline among home movers.

Remortgage applications increased by 12% to 114,717, suggesting more existing homeowners are concentrating on securing their next mortgage deal.

The figures highlight the continued demand from people trying to get onto the property ladder, even in a more challenging mortgage market.

How long are houses and flats taking to sell in 2026?

Properties are generally taking longer to sell, potentially giving buyers more time to negotiate.

According to Zoopla, the average UK property takes approximately 42 days to find a buyer, increasing from 37 days in 2025.

Separate Zoopla research found that flats generally take longer to sell than houses, particularly in London and the South East.

Property type	Average days to find a buyer
UK houses	32 days
UK flats	40 days
London houses	37 days
London flats	45 days
South East houses	37 days
South East flats	49 days

Source: Zoopla, March–May 2026. The figures measure the time to find a buyer, not legal completion.

More recent Rightmove figures show the average property took 67 days to secure a buyer nationally in September 2026. The different figures reflect the organisations' methodologies and reporting periods.

For buyers, longer selling times and increased property availability could create opportunities to negotiate lower asking prices, particularly where properties have been advertised for several months. However, many homeowners will not sell if they do not achieve what they deem a fair asking price.

If you agree to buy a property now, when will you get the keys?

Buyers having an offer accepted in October 2026 may not receive the keys until January, February or March 2027.

In England and Wales, a straightforward purchase commonly takes approximately 12 to 20 weeks from an accepted offer to completion. Transactions involving longer chains, leasehold properties or legal complications can take longer.

First-time buyers purchasing chain-free properties may be able to move more quickly.

This is worth considering for anyone deciding whether to buy now or wait until after the Budget. Even if an offer is accepted in October, the purchase may not complete until well into 2027.

Mortgage offers commonly remain valid for several months, although the exact period depends on the lender and product. A mortgage broker can also investigate whether a cheaper deal becomes available before completion.

Could the Autumn Budget affect the property market?

The Autumn Budget on 28 October 2026 could influence house prices, mortgage rates and buyer confidence.

Homebuyers will be watching for any changes to property taxation, housing incentives and government support schemes.

The Budget could also affect mortgage pricing because financial markets will assess the Government's borrowing and spending plans. Changes in gilt yields and swap rates can influence lenders' mortgage funding costs.

Some buyers may prefer to wait until the Budget announcements are confirmed. However, there is no guarantee mortgage rates or house prices will fall afterwards.

Will the new Help to Buy scheme make purchasing easier?

The Government has announced plans for a new Help to Buy-style equity loan scheme called Your First Home, with further details expected in the Autumn Budget.

Under the proposed scheme, eligible first-time buyers in England could purchase a new-build property with a deposit of just 2.5%, supported by a government-backed equity loan of 20%.

For example, someone purchasing a £300,000 property could potentially use a £7,500 deposit and a £60,000 equity loan, leaving a £232,500 mortgage.

The scheme is expected to include an initial interest-free period on the equity loan. However, income limits, property price caps, repayment terms and launch dates are still to be confirmed.

The scheme could help buyers who can afford mortgage repayments but struggle to save substantial deposits while renting.

More homeowners are considering new-build properties

Research from newhomesforsale.co.uk, reported by Mortgage Strategy, shows enquiries from existing homeowners interested in new-build properties increased by 23% during the first half of 2026 compared with the previous six months.

The North East recorded a 43% increase, followed by the South East at 34% and the East of England at 26%.

The research suggests more second and third-time buyers are considering new-build properties, potentially attracted by modern specifications, energy efficiency and housebuilder incentives.

Some developers offer part-exchange schemes, stamp duty contributions and flexible completion arrangements to encourage sales.

These incentives can be attractive to home movers, although buyers should compare the overall price and ongoing property costs with similar existing homes.

Should you buy now or wait until mortgage rates fall?

Waiting for mortgage rates to fall may seem sensible, but predicting when borrowing costs will be at their lowest is difficult.

If rates decrease, more buyers could return to the market, potentially increasing competition for desirable properties.

Buying now could provide opportunities to negotiate a competitive purchase price, particularly where sellers are keen to move.

However, buyers should avoid stretching their finances and consider how affordable their mortgage repayments would remain if rates increased when their initial deal expires.

Ultimately, the most important factors are finding a suitable property, securing an affordable mortgage and being confident about the longer-term commitment.

Not long ago, some borrowers said they wouldn't buy a property until mortgage rates fell below 4%. With a view like this, they could wait a long time before buying a property and getting on the housing ladder, potentially missing out on great homes and decent mortgage acceptance criteria.

Aaron Strutt, Product Director at Trinity Financial, comments:

"People often ask whether it is a good time to buy a property, but there is rarely a perfect time. Mortgage rates have increased and affordability is tighter, although there are still some competitively priced deals available.

"With rents reaching record highs, more tenants will understandably be questioning whether they should be putting their money towards owning a home instead.

"The property market has slowed and many houses and flats are taking longer to sell, which could put buyers in a stronger position to negotiate. The upcoming Budget and new Help to Buy-style scheme could also influence confidence in the market.

"For most people, buying a property is a long-term decision. If they find the right home, can comfortably afford the repayments and intend to stay for a reasonable period, trying to predict exactly when mortgage rates or house prices will be at their lowest is not always the best approach.

"There can also be substantial differences in how much lenders will allow people to borrow, so speaking to a mortgage broker can help buyers understand their options and find the most competitive rates and mortgage loan sizes available."

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Any links to third-party websites are provided for information and convenience purposes only. We are not responsible for the content or availability of external sites

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage

Sources: Rightmove, Zoopla, Yorkshire Building Society, Moneyage.