Dan Gale 22/10/2025 Dan Gale 22/10/2025

First-Time Buyers Now Spend £163,000 on Rent Before Buying – Why This Matters to Homeowners and Landlords

New figures have revealed that first-time buyers are now paying an eye-watering £163,047 on rent before they are able to purchase their first home. This represents a 40 per cent increase in a decade, according to research from specialist mortgage lender Perenna.

Back in 2015, renters typically spent £116,427 before buying. Today, they are parting with £46,621 more, as rising rents and living costs make saving for a deposit harder than ever.

This amount is now equivalent to a 60 per cent deposit on the average UK home, highlighting how much money is being spent without building equity or ownership.

Why It Matters to Existing Homeowners and Landlords

While this may seem like an issue only affecting first-time buyers, it has significant implications for homeowners and landlords too.

· For Homeowners Looking to Sell: First-time buyers are the base of the housing chain. When fewer people can afford to take that first step, it slows demand for entry-level homes, which in turn makes it harder for sellers to move up the ladder. This can lead to slower sales and longer periods of uncertainty when trying to complete property transactions.

· For Landlords: Higher rents mean strong demand for rental properties, which can support yields. However, it can also create political and regulatory pressure for rent controls or stricter tenant protections. With average rents continuing to rise faster than wages, landlords should keep a close eye on potential government interventions.

House Prices and Deposits

According to the Office for National Statistics, the average UK house price reached £270,000 in July.

· A 10 per cent deposit now requires around £27,000, a target many renters find increasingly out of reach due to high rental costs and the elevated cost of living¹.

· This creates a vicious circle, with tenants struggling to save while paying high rents, further delaying their entry into the housing market.

Mortgage Affordability Rules Begin to Ease

Even for renters who have managed to save, strict mortgage affordability rules are another obstacle.

· Most single buyers are limited to borrowing 4.5 times their annual salary, which can be insufficient to buy in many parts of the country1.

Some lenders are now loosening these restrictions following regulatory changes announced by Chancellor Rachel Reeves, potentially opening the door for more buyers to secure mortgages¹.

For homeowners, this could mean a broader pool of buyers and a stronger, more active market when selling a property.

Renting for Longer Than Ever

Perenna’s research also found that first-time buyers now spend 12.8 years renting before purchasing, up from 11.4 years a decade ago, based on the assumption they start renting at age 211.

Colin Bell, founder of Perenna, said: “There is a time and a place for renting. While some may make the personal choice to rent in the long term, others are forced into a seemingly never-ending cycle of rising costs. Renting is ultimately money spent without return. Unlike mortgage payments, which build equity, rent offers no stake in the property and often doesn't even strengthen someone's credit profile - despite renters frequently paying more each month than they would with a mortgage1.”

Rents Hit Record Highs

The rental market is under extreme pressure, with average rents rising by 5.7 per cent in the year to August1:

· UK average monthly rent: £1,348

· London: £2,253, the highest in the country

· North East: £745, the lowest

· Wales: saw the sharpest annual increase, up 7.8 per cent to £811

· Scotland: up 3.5 per cent to £1,002

Ben Twomey, chief executive of Generation Rent, said: “Rents continue to rise faster than wages, swallowing more and more of people’s income. We rightly have caps on our energy and water bills, but there are no protections to stop landlords from pricing us out of our homes.”

For landlords, this highlights both opportunity and risk. Strong rental demand can be positive for returns, but it also increases the likelihood of political action to control rising rents.

Low-Deposit Mortgages Offer Hope

To help renters break free from the rental trap, some lenders are introducing low-deposit mortgage products.

· Newcastle Building Society, for example, has recently launched a two per cent deposit mortgage1.

While these products could help some first-time buyers, they often come with higher interest rates and strict eligibility rules, meaning they are not suitable for everyone.

Colin Bell believes more needs to be done: “With house prices increasing overall, Renters could have spent their hard-earned money on an appreciating asset, but the market is failing to provide the right financial mechanisms to help lift buyers onto the ladder.”

What Homeowners and Landlords Should Consider

· For Homeowners: The introduction of more flexible mortgage rules and low-deposit products could increase the number of active buyers in the market. This may help maintain property values and make it easier to sell your home when the time comes.

· For Landlords: Higher rental costs may strengthen demand for rental properties, but landlords should plan for possible regulatory changes such as rent caps or increased tenant protections. A balanced approach to rent setting will help maintain strong relationships with tenants while reducing risk.

Looking Ahead

The next few months will be crucial for both buyers and sellers. With new mortgage products emerging and lenders relaxing affordability criteria, more renters could finally make the move into homeownership. For homeowners and landlords, staying informed about these shifts is essential to protect investments, plan future moves, and adapt to a changing housing landscape.

Source:

1. Msn.com. (2025). This is how much first-time home owners spend on rent before buying - it's risen £46,621 in a decade Available at: https://www.msn.com/en-za/news/other/this-is-how-much-first-time-home-owners-spend-on-rent-before-buying-it-s-risen-46-621-in-a-decade/ar-AA1MMICt?ocid=finance-verthp-feeds&apiversion=v2&domshim=1&noservercache=1&noservertelemetry=1&batchservertelemetry=1&renderwebcomponents=1&wcseo=1#:~:text=First%2Dtime%20buyers%20now%20spend,decade%20ago%2C%20fresh%20research%20reveals.&text=Soaring%20rents%20mean%20prospective%20buyers,to%20specialist%20mortgage%20lender%20Perenna. [Accessed 22 Sep. 2025].

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £99 to £695 and this will be discussed and agreed with you at the earliest opportunity

All the information in this article is correct as of the publish date 25th September 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Dan Gale 11/10/2025 Dan Gale 11/10/2025

Is Your Mortgage Deal Ending in Early 2026? Why Now Is the Time to Act

Homeowners whose fixed-rate mortgage deals expire in early 2026 are being urged to start planning ahead, as a new wave of rate rises and higher payments could be on the horizon.

UK Finance data shows that around 1.6 million fixed-rate mortgage deals are due to end in 2025, with a similarly high number expected to mature in 2026 1 .If you are one of them, it is important to act early to avoid the shock of increased monthly payments and to secure the most suitable deal for your circumstances.

Five-Year Fixes: A Different World in 2021

Many households locked into five-year fixed rates in 2021, when the Bank of England base rate was at an historic low. At that time, borrowers could secure deals below 2 percent, making mortgage repayments relatively affordable. Since then, the landscape has changed dramatically. The Bank of England raised interest rates repeatedly to tackle inflation, pushing its base rate to 5.25 percent in 2024, with mortgage rates following suit 2. If your five-year deal is coming to an end in early 2026, you are likely to face a significant increase in your monthly payment.

Two-Year Fixes: The Turmoil of 2023

If you fixed your mortgage rate for two years in 2023, you may remember that rates were unusually high. This was a direct result of the financial market upheaval caused by the September 2022 mini-budget. Many lenders withdrew products or repriced them, with two-year fixed rates often above 6 percent. If you fixed during this period, you have already been managing higher payments. As your deal nears its end, it is wise to plan early to secure the most suitable next rate, as the market remains volatile and rates are still well above pre-2022 levels.

Three-Year Fixes: Caught in the Middle

Some borrowers opted for three-year fixes in 2022. At the start of that year, rates were relatively low, but they began to rise quickly as the Bank of England increased rates to control inflation. After the mini-budget in September 2022, mortgage rates surged even higher. Borrowers who fixed early in 2022 benefited from better rates, while those who waited faced higher payments 3. If your three-year deal is due to finish in 2026, you should review your options as soon as possible to avoid rolling onto your lender’s standard variable rate, which is usually more expensive.

What Should Homeowners Do Now?

Experts agree that it is not wise to leave your next mortgage decision until the last minute. Most lenders allow you to secure a new deal up to six months before your current rate expires. Acting early can help you lock in a competitive rate and avoid unwelcome surprises

if the market changes again. If rates fall before your new deal begins, you may have the option to switch to a better deal.

Here is what you should do:

· Check the end date of your current mortgage deal.

· Speak to your adviser several months before your deal expires.

· Compare the latest rates and products on the market.

· Consider your household budget and whether you need certainty or flexibility in your payments.

Why Early Action Matters

Mortgage rates have risen sharply since 2021 and may not drop significantly in the near future. The Bank of England has indicated that interest rates will remain higher for longer to bring inflation under control. This means many homeowners will see their payments increase, and planning ahead can help you manage your finances and avoid any nasty shocks4.

The Bottom Line

Whether your mortgage was fixed during the bargain rates of 2021, the market chaos of 2023, or the uncertain times of 2022, now is the time to review your options. Acting early could help you secure a more affordable deal and give you peace of mind as you plan for the future.

If you have questions about your mortgage or want to discuss your next steps, contact your adviser as soon as possible.

References:

1. UK Finance (2025) Household Finance Review: Q1 2025. Lee Hopley (Director, Economic Insight & Research) and James Tatch (Principal, Head of Analytics). UK Finance, June 2025. Available at: https://www.ukfinance.org.uk/system/files/2025-06/Household%20Finance%20Review%202025%20Q1.pdf [Accessed 23 Jul. 2025].

2. The Guardian 2024. Soaring UK mortgage rates have pushed 320,000 adults into poverty, thinktank says. Available at: https://www.theguardian.com/society/article/2024/jul/25/soaring-uk-mortgage-rates-have-pushed-320000-adults-into-poverty-thinktank-says [Accessed 23 Jul. 2025].

3. Morningstar UK,, 2022. Lenders withdraw mortgages after mini-budget sparked market turmoil .Available at: https://www.morningstar.co.uk/uk/news/AN_1664217395970258700/lenders-withdraw-mortgages-after-mini-budget-sparked-market-turmoil.aspx [Accessed 23 July 2025].

4. MoneyWeek, 2025. Millions of homeowners to see mortgage payments rise. 10 July. Available at: https://moneyweek.com/personal-finance/mortgages/mortgage-payments-rise [Accessed 23 July 2025].

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

All the information in this article is correct as of the publish date 31st July 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Please be aware that by clicking on to any of the above links you are leaving our website. Please note that neither we nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Dan Gale 11/10/2025 Dan Gale 11/10/2025

Why Speaking to a Mortgage Broker Before Your Mortgage Deal Ends Could Save You Thousands and Protect Your Future

Taking out a mortgage is one of the biggest financial commitments you will ever make. While securing your initial deal can feel like a major milestone, it is only the beginning. With most UK mortgages offering two or five-year fixed rates, many homeowners will need to remortgage sooner than they realise. Failing to plan ahead can result in paying far more than necessary and leaving your home at risk if life takes an unexpected turn.

The Cost of Doing Nothing

When your fixed-rate deal ends, your mortgage will usually move to your lender’s Standard Variable Rate (SVR).

· SVRs are usually four or five percentage points higher than fixed-rate deals.

· This could increase your monthly repayments by hundreds of pounds.

Even if interest rates are higher than when you first took out your mortgage, remortgaging almost always costs less than staying on an SVR. Doing nothing could mean paying thousands of pounds more each year.

Why Speak to a Mortgage Broker

1. Access to a Comprehensive Panel of Lenders

A mortgage broker works with a comprehensive panel of lenders. This means they can review a wide range of mortgage products rather than being restricted to the deals offered by your current bank or building society. This gives you a much better chance of finding the most competitive option for your circumstances.

2. Matching You With the Right Lender

Every lender has its own criteria for approving applications. These include how they assess income, the type of property being purchased, and even whether they accept applicants who have recently changed jobs or are self-employed.

· Going directly to one lender increases the risk of being rejected.

· A mortgage broker understands these rules and can match you to a lender who is more likely to approve your application.

3. Planning for the Unexpected

A mortgage is not just about buying a home. It is also about protecting your ability to stay in it.

· A mortgage broker will review protection options, including life cover, critical illness cover, and income protection.

· These products ensure that if illness, injury, or even death affects your household income, you and your family will still be able to afford your home.

This additional level of planning gives you peace of mind and helps protect your family’s future.

4. Avoiding Mistakes

Applications can be complicated, especially if you have a unique situation such as self-employment, multiple income sources, or a property of non-standard construction. A broker’s expertise helps avoid errors and delays, reducing the risk of a failed application.

Timing Is Crucial

You can apply for a new mortgage up to six months before your current deal ends.

· Acting early allows you to lock in a competitive rate and move seamlessly from one deal to another.

· Lender offers are typically valid for three to six months, giving you flexibility to plan ahead.

Waiting too long increases the risk of slipping onto an expensive SVR while your application is being processed.

Other Benefits of Remortgaging

1. Access to Better Deals Through Equity Growth As you repay your mortgage and your home’s value increases, your loan-to-value ratio improves. This can unlock cheaper rates that were not available to you before.

2. Release Equity for Major Plans Remortgaging can allow you to release some of the value in your home to fund renovations or pay off other debts. This must be carefully considered, as it will increase your monthly payments and the total interest you pay.

3. Make Overpayments Without Penalties When your current deal ends, it is often a good time to make lump-sum payments without facing early repayment charges.

Steps to Take Now

· Check the exact date your current deal ends.

· Gather documents such as proof of income, bank statements, and ID to speed up the process.

· Review your credit file to ensure there are no errors that could delay your application.

· Speak to a mortgage broker early to discuss both mortgage rates and protection needs.

Why It Pays to Get Advice

Going directly to your lender limits you to their products alone. A mortgage broker with access to a comprehensive panel of lenders can help you secure the most competitive deal while also advising on protection to keep your home safe.

By acting early and seeking professional advice, you can save money, avoid unnecessary stress, and ensure that your family and your home are secure, no matter what the future brings.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Dan Gale 16/07/2025 Dan Gale 16/07/2025

Simple Summer Projects That Could Add Thousands to Your Home’s Value

Summer is the perfect time to tackle those home improvements you have been putting off. But instead of just ticking off a list of repairs, why not focus on the projects that can actually add value to your property?

Whether you are planning to sell soon or simply want to enhance your living space, these simple updates could increase your home's appeal and potentially boost its value by thousands of pounds.

Freshen Up the Exterior with a Coat of Paint

The outside of your home is the first thing anyone sees, and a tidy, well-maintained exterior makes a lasting impression. Painting your front door, window frames or external woodwork can dramatically improve kerb appeal. According to several property experts, a smart and clean-looking exterior could add £15,000 to a home’s value, depending on the scale of the work and the existing condition of the property1.

These types of jobs are ideal for summer, as dry, warm days help paint and treatments to set properly. They are also low-cost, often requiring little more than a weekend of effort and a few cans of quality paint. If you are repainting near open walls, fences or doors, remember to check that fire alarms remain active and that you are not doing anything that might affect your home insurance without informing your provider.

Tidy Up Your Patio or Decking Area

Outdoor spaces are a big selling point, especially during the summer. Cleaning up your patio or refreshing your decking can make your garden far more usable and attractive. Tasks like replacing broken slabs, power-washing surfaces, sanding and re-staining decking, or adding simple lighting features can transform a tired space into a relaxing retreat.

Well-maintained gardens can contribute as much as 5% to a property's sale value1. For a home valued at £3,000, that could mean a potential boost of £15,000 . Before carrying out any electrical work outdoors, always use a qualified professional and check that your home insurance policy covers outdoor fixtures.

Add Loft Insulation for Year-Round Savings

Loft insulation might not be the most glamorous summer project, but it is one of the most cost-effective. Adding or upgrading insulation can help reduce heat loss during winter and keep your home cooler in the summer. Studies suggest that homeowners can save up to £790 a year on their energy bills after insulating a poorly insulated loft2.

Although the cost of professional insulation varies depending on the size and accessibility of the space, it is an investment that can pay for itself within a few years. Summer is an ideal time to get this work done because loft spaces are dry and easier to access when temperatures are higher.

Install a Smart Thermostat

Smart thermostats are becoming increasingly popular among homeowners looking to manage their heating more efficiently. These devices allow you to control your home’s temperature remotely and can adjust automatically to your habits. Some models can even detect when windows are left open and respond accordingly.

The cost of a smart thermostat device typically ranges from £110 to £300, and installation may cost a further £70 to £150 depending on the complexity of your heating system. Homeowners often save between 10%-15% a year on energy bills, and smart technology can add up to 2% to 5% of the property’s value3.

If you are considering installing a smart thermostat, make sure your boiler is compatible and use a certified engineer. You should also let your home insurer know about the upgrade, as it may affect your policy.

Before You Begin: Safety and Financial Considerations

Before starting any improvement project, test your smoke alarms and check that you are not invalidating your insurance policy. This is particularly important if you are doing DIY or using external tradespeople. If you are planning structural work, installing new wiring or making major upgrades, you may also need to notify your local authority or mortgage provider.

This is where your mortgage adviser can help. If you are making significant changes to your home, it is always best to check whether this will affect your mortgage terms, your insurance cover or your overall protection. An adviser can guide you on whether you need additional cover, whether a valuation will be affected, or whether now might be a good time to review your mortgage deal in light of your investment in the property.

The Bottom Line

July is a great time to invest in your home. From painting and patios to insulation and smart tech, there are projects that suit every budget and can boost the comfort, energy efficiency and value of your property. Just remember to plan carefully, stay safe, and always speak to your mortgage adviser before making any big decisions that could affect your finances or your cover.

Sources:

1. The Sun (2025). 7 easy and cheap home improvements that could add £75,000 to your home... Available at: https://www.thesun.co.uk/money/33358192/easy-cheap-cost-effective-home-improvements/ [Accessed 24 Jun. 2025].

2. EDF. (2024). Home Insulation Installs | Loft & Cavity Wall Insulation | EDF. Available at: https://www.edfenergy.com/heating/insulation#footnote-energy-saving-trust-home-insulation-costs [Accessed 24 Jun. 2025].

3. Homeadviceguide (2021). Understanding Smart Thermostat Installation Cost: A Complete Guide. Available at: https://www.homeadviceguide.com/smart-thermostat-installation-cost/ [Accessed 24 Jun. 2025].

All the information in this article is correct as of the publish date 3rd July 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Dan Gale 07/04/2025 Dan Gale 07/04/2025

Spring Statement 2025: What You Need to Know

On the 26th of March, Chancellor Rachel Reeves delivered her first Spring Statement, setting out the government’s latest plans for the economy, public services, housing and more. With a focus on stability, growth and long-term reform, the statement outlined key changes that could affect everything from homebuilding and defence to tax and welfare.

We’ve summarised the main announcements below so you can quickly understand what’s changing.

1. Economic Outlook and Fiscal Position

The UK economy is forecast to grow by 1.0% in 2025, rising to 1.9% in 2026, with growth upgraded from previous forecasts for every year after 2025.
Inflation is expected to peak at 3.8% in July 2025, before falling close to the 2% target from mid-2026 onwards.
The government is forecast to meet its fiscal rules (stability and investment) two years early, with the current budget in surplus by £9.9 billion in 2029-30.
Public sector net borrowing is forecast to fall from 4.8% of GDP in 2024-25 to 2.1% in 2029-30.

2. Defence and Security

Defence spending will rise to 2.5% of GDP by April 2027, with a £2.2 billion increase in the MOD budget for 2025-26.
The government plans a further rise to 3% of GDP in the next Parliament, subject to economic conditions.
Investment includes enhancing military capabilities and establishing UK Defence Innovation (UKDI) with a £400 million ringfenced budget starting July 2025.

3. Housing and Infrastructure

An additional £2 billion will be invested in social and affordable housing in 2026-27, expected to deliver up to 18,000 new homes.
Planning reforms through the National Planning Policy Framework (NPPF) are projected to result in 170,000 additional homes by 2030 and add £6.8 billion to GDP by 2029-30.
The Planning and Infrastructure Bill aims to streamline planning for housing and critical infrastructure.

4. Skills and Construction

A £625 million construction skills package will train up to 60,000 additional workers, supporting the government’s goal to build 1.5 million homes in England during this Parliament.
Investment includes skills bootcamps, construction apprenticeships, and Technical Excellence Colleges.

5. Tax and Compliance

HMRC will recruit 500 additional compliance staff and 600 debt management staff, aiming to increase tax collection and reduce the £44 billion stock of tax debt.
Making Tax Digital (MTD) will be extended to self-employed and landlords with income over £20,000 from April 2028.
Penalties for late tax payments will increase from April 2025.
New consultations have been launched on tax adviser regulation, data use, avoidance promoters, and simplifying penalties.

6. Welfare Reform

The Universal Credit health element will be cut by 50% for new claimants from April 2026, and frozen for existing claimants until 2029-30.
The standard Universal Credit allowance will rise above inflation from 2026-27, reaching £106 per week in 2029-30 for single adults over 25.
Work Capability Assessment reassessments will restart, and Personal Independence Payment (PIP) eligibility will be tightened.
These reforms are expected to save £4.8 billion from welfare spending by 2029-30.

7. Public Services and Reform

A £3.25 billion Transformation Fund will modernise public services using digital technology and AI, with early investments in fostering, probation services, and AI pilot projects.
NHS England will be brought back into the Department of Health and Social Care to reduce bureaucracy.
Departments will reduce administrative budgets by 15% by the end of the decade, saving £2.2 billion annually.

8. Capital Investment and Growth Strategy

An additional £13 billion in capital investment has been allocated this Parliament.
Funding includes £4.8 billion for the Strategic Road Network in 2025-26 and support for infrastructure such as West Yorkshire Mass Transit.
A modern Industrial Strategy and a 10-Year Infrastructure Strategy will be published at the Spending Review on 11 June 2025.

9. International Development and ODA

Official Development Assistance (ODA) will be reduced from 0.5% to 0.3% of GNI by 2027, freeing up funds to meet the defence spending target.
The government remains committed to returning to 0.7% of GNI when fiscal conditions allow.

Our initial mortgage consultation is free and with no obligation, and should you proceed to an application there may be a fee for mortgage advice, payable on completion of your transaction. The precise amount will depend upon your circumstances and will be agreed with you before proceeding, but a typical fee is £395.

Source: HM Treasury (2025). Spring Statement 2025. Available at: https://www.gov.uk/government/collections/spring-statement-2025 [Accessed 26th Mar. 2025].

Dan Gale 28/03/2025 Dan Gale 28/03/2025

Making Tax Digital

Making Tax Digital for Income Tax Self Assessment for sole traders and landlords is coming.

Landlords and sole traders with business or property income over £30,000 will be required to maintain digital records of trading income and update HMRC each quarter using compatible software.

It will be rolled out in two phases:

From April 2026, for those with qualifying income over £50,000
From April 2027, for those with qualifying income over £30,000

Fore information can be viewed on this topic by clicking the link below;

https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords/making-tax-digital-for-income-tax-self-assessment-for-sole-traders-and-landlords

Please be aware that by clicking on to the above link you are leaving Liddington & Co Ltd website. Please note that Liddington & Co Ltd nor HL Partnership Limited are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

Dan Gale 25/03/2025 Dan Gale 25/03/2025

Big Changes Proposed to Make Mortgages Easier

There’s some potentially good news on the horizon for homeowners and aspiring buyers: the Financial Conduct Authority (FCA) is considering shaking things up in the mortgage world. With house prices soaring and affordability feeling like a distant dream, these proposed changes aim to make borrowing simpler, fairer, and more accessible. If you’ve ever felt the stress of scraping together enough for a deposit or struggled to meet strict lending rules, this could be the break you’ve been waiting for.

What’s Changing?

The FCA is looking to loosen some of the rigid rules around mortgages to help more people get on - or move up - the property ladder. They’re reviewing everything from how much you can borrow to how your affordability is assessed.

For example, did you know that right now, mortgage lenders can only offer a limited number of loans to people borrowing more than 4.5 times their income1? Under the FCA’s plans, that rule might soon be relaxed, potentially giving buyers, especially first-timers, more options2. Plus, renters could see their regular payments count towards affordability assessments, finally recognising that if you’ve been paying rent every month, you can probably manage a mortgage too3.

If the plans materialise, these changes could mean more people being able to potentially afford the homes they want—whether they’re first-time buyers, upgrading for more space, or looking to downsize.

What It Means for You

Imagine this: Perhaps you’ve outgrown your current home but have been stuck because of the amount of lending available relative to your income, or you have first-time buyers in the family who are currently renting, but unable to get onto the property ladder – these proposed changes aim to address those very frustrations. By making the rules less restrictive, the FCA wants to make it easier for people to buy the home that suits their life.

A Balancing Act

Of course, the experts warn there’s a flip side. Relaxing these rules could mean lenders take on a bit more risk, and not every plan will succeed. However, the FCA’s chief, Nikhil Rathi states that this is about creating opportunities, even if it means taking some calculated risks3. For homeowners and buyers, it could represent a chance to access better deals and make homeownership dreams more attainable.

What’s the Catch?

Here’s the reality check: if demand for homes increases but there aren’t enough properties available, property prices could keep rising. That’s why it’s important to keep an eye on the supply side of housing too.

So, What’s Next?

If these changes go ahead, it could mark a significant shift in how mortgages work in the UK. Whether you’re looking to move into something a little bigger or have family members looking to take their first steps on the property ladder, the playing field might soon feel a little more even.

Rest assured that we’ll be here to share more information should any of these proposed changes go ahead, and how they may affect you. We’re here to help provide bespoke advice that’s tailor-made to your exact circumstances, so if you’re thinking of moving or looking at opportunities around the corner, please just get in touch and we can review your situation.

Sources

1. The Guardian (2025) UK mortgage rules could be eased to increase growth. Available at: https://www.theguardian.com/money/2025/jan/17/uk-mortgage-rules-growth-fca-home-ownership-ppi [Accessed 20 Jan 2025]

2. Scottish Business News (2025). Mortgage rules may be loosened to boost borrowing, says FCA. Available at: https://scottishbusinessnews.net/mortgage-rules-may-be-loosened-to-boost-borrowing-says-fca [Accessed 20 Jan 2025]

3. BBC News (2025). Mortgage lending rules under review: FCA reveals plans. Available at: https://www.bbc.co.uk/news/articles/cdryy33v13ko [Accessed 20 Jan 2025]

All the information in this article is correct as of the publish date 30th January 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Dan Gale 16/03/2025 Dan Gale 16/03/2025

Property Experts Forecast 2025 to be a Buyer’s Market

It all begins with an idea.

The UK housing market is showing signs of a strong start in 2025, with significant increases in new property listings and a rise in average asking prices. Estate agents Rightmove report that the average price of properties coming to market has increased by 1.7% (£5,992) this month, reaching £366,189—the largest new year price jump since 20201. Despite this growth, average prices remain approximately £9,000 below the peak reached in May 2024, reflecting ongoing affordability considerations for buyers.

Increased Property Listings

The number of new property listings has risen by 11% year-on-year since Boxing Day, providing buyers with a broader selection of homes1. This influx has led to the highest number of properties available per estate agency branch for this time of year in a decade1. The increased supply is intensifying competition among sellers, who are being advised to price properties realistically to attract potential buyers1.

Buyer Activity and Market Dynamics

Buyer interest has also surged, with a 9% increase in inquiries to estate agents and an 11% rise in agreed sales compared to the same period last year1. This suggests that buyers are responding positively to greater property availability and expectations of improving mortgage rates2. However, the market remains sensitive to external factors, such as interest rate fluctuations and impending stamp duty changes, which may influence buyer behaviour later in the year1.

Tim Bannister, Rightmove’s Director of Property Data, highlighted that while the market is experiencing a buoyant start, sellers must remain pragmatic with pricing strategies1. Overpricing could deter potential buyers, particularly in a market where affordability continues to be a critical concern. Bannister emphasised that realistic pricing is key to ensuring successful transactions in the current competitive landscape1.

Conclusion

Early indicators for 2025 suggest a vibrant housing market driven by increased supply and active buyer participation. While more property options benefit buyers, it’s wise for sellers to adopt realistic pricing to help aid changes of a sale in such a busy marketplace. With the market poised for growth, attention to economic factors like interest rates and policy changes will be crucial for both buyers and sellers as the year progresses.

Sources

1. The Guardian (2025). UK housing market ‘starts new year with a bang’, says Rightmove. Available at: https://www.theguardian.com/business/2025/jan/20/homes-uk-housing-market-new-year-rightmove [Accessed 20 Jan 2025]

2. Rightmove (2024) Rightmove’s 2025 Housing Market Forecast. Available at: https://www.rightmove.co.uk/press-centre/rightmoves-2025-housing-market-forecast/ [Accessed 20 Jan 2025]

Dan Gale 16/03/2025 Dan Gale 16/03/2025

Buying a Home in a Flood Risk Area: What You Need to Know

Purchasing a home is one of the most significant decisions you'll ever make, so it's crucial to consider all potential risks before committing. This winter, flooding has once again made the headlines, affecting many homes across the UK, and highlighting the importance of factoring in flood risk when searching for your next property.

For some UK buyers, this means carefully evaluating the possibility of purchasing a home in a flood-prone area. With extreme weather events becoming increasingly common, understanding and assessing flood risks is vital to safeguarding your investment—and your peace of mind.

What is a Flood Risk Area?

A flood risk area refers to a location that is more susceptible to flooding, whether from rivers, the sea, or surface water. According to the Environment Agency, over 5.2 million properties in England are at risk of flooding1. In Scotland, Wales, and Northern Ireland, similar assessments are made by SEPA, NRW, and DfI Rivers, respectively. Flood risk isn’t confined to areas near rivers or coastlines; heavy rainfall and inadequate drainage systems can also pose a threat in urban areas.

Should You Buy a Property in a Flood Zone?

Buying a home in a flood zone isn’t necessarily a dealbreaker, but it does require very careful consideration. Properties in these areas can sometimes be more affordable, but there are potential downsides. You may face challenges securing insurance, higher premiums, or even difficulty selling the property in the future. That said, properties with robust flood defences or lower-risk classifications may offer greater peace of mind here.

Assessing the Flood Risk

Before you fall in love with a property, take the time to investigate its flood risk. The Environment Agency provides a free online flood risk assessment tool for properties in England, while devolved governments offer similar services in other parts of the UK. · England - https://flood-map-for-planning.service.gov.uk/ · Wales - https://naturalresources.wales/flooding/check-your-flood-risk-by-postcode · Scotland - https://map.sepa.org.uk/floodmaps · Northern Ireland - https://www.nidirect.gov.uk/articles/check-risk-flooding-your-area

These tools allow you to check the likelihood of flooding from various sources and provide detailed maps of flood zones. Additionally, it’s important to ask the seller for any information about the property’s flood history or damage caused by previous flooding.

The Environment Agency has created a series of Flood Zone Tiers to help assess the risk2:

· High: These are the areas with the most severe chance of flooding, and have over a 3.3% chance of it flooding each year. This also takes flood defences into account.

· Medium: These areas have a 1-3.3% chance of flooding each year, again taking into account the effects of defences.

· Low: Low risk are areas of the UK which have a 0.1% to 1% chance of yearly flooding.

· Very Low: This risk level is given to those UK areas with less than a 0.1% chance of flooding each year.

Additionally, it is always worth noting the type of flooding, whether it be coastal, rivers, surface water, sewers etc.

Flood Insurance Considerations

Insuring a property in a flood zone can be more expensive and challenging. The good news is that the Flood Re3 scheme, introduced by the government and insurance industry, makes it easier and more affordable to insure properties built before 2009 against flood damage. However, homes constructed after 2009 are not eligible for the scheme, so it’s vital to explore your options and get quotes from multiple insurers.

Protecting Your Home

If you decide to buy a property in a flood-prone area, it’s essential to take proactive steps to mitigate risk. Installing flood defences such as barriers, airbrick covers, and non-return valves on drains can significantly reduce the impact of flooding. Raising electrical sockets and keeping valuable items on higher floors are also practical measures. Some homeowners may even qualify for grants or local authority assistance to install flood prevention measures.

Seeking Expert Advice

When purchasing a property in a flood zone, enlisting the help of experts can make a big difference. A qualified surveyor can assess the risk and provide recommendations for flood protection. Solicitors experienced in property transactions should also be consulted to review flood-related issues during the conveyancing process. They can confirm whether the property is located in a flood risk area and outline your responsibilities as a homeowner.

Weighing the Pros and Cons

Buying a home in a flood risk area doesn’t have to be a source of constant worry. Many UK homes in flood zones remain safe and dry thanks to effective flood management strategies. However, it’s crucial to weigh the potential risks against the benefits and ensure you’re prepared for any eventuality. By doing your research, taking precautions, and consulting professionals, you can make an informed decision and enjoy your new home with confidence.

Sources

1. Environment Agency (2025) Flooding in England: A National Assessment of Flood Risk. Available at: https://assets.publishing.service.gov.uk/media/5a7ba398ed915d4147621ad6/geho0609bqds-e-e.pdf [Accessed 15th Jan 2025]

2. Property Rescue (2025) Selling A House In A Flood Zone. Available at: https://propertyrescue.co.uk/useful-guides-articles/selling-a-house-in-a-flood-zone/ [Accessed 15th January 2025]

3. Flood Re (2025) What is Flood Re?. Available at: https://www.floodre.co.uk/ [Accessed 15th Jan 2025]