The UK housing market is undergoing a notable shift, as highlighted by the latest Reuters poll. House price growth is now forecasted to be slower than previously expected, a trend that is widely anticipated to improve affordability for first-time buyers and create a more balanced environment for all market participants. According to the Reuters survey, a significant 92% of respondents expect affordability for first-time buyers to improve in the coming months. This development comes as a welcome relief to many prospective homeowners who have faced years of rapidly rising prices and challenging mortgage conditions.

Revised forecasts from the poll show that expectations for house price increases have been tempered. In 2025, prices are projected to rise by 2.6%, down from earlier estimates of 3.5%. For 2026, the forecast has been adjusted to 3.1%, compared to the previous 4.0%, and a similar 3.1% rise is expected in 2027, down from 3.5%. This slowdown in house price growth signals a turning point for the market, making homeownership a more attainable goal for a broader segment of the population.

Several factors are contributing to these changing dynamics. Lower asking prices are emerging as sellers respond to shifting market conditions and the need to attract buyers in an environment characterized by increased supply. At the same time, mortgage rates have begun to ease from their recent highs, following a period of aggressive monetary tightening by the Bank of England. This reduction in rates is especially impactful for first-time buyers, who are often most sensitive to changes in borrowing costs and overall affordability.

Another key factor supporting improved affordability is the increase in housing supply. New construction and the release of additional properties onto the market are helping to moderate price growth, providing buyers with more options and reducing the intense competition that has driven prices higher in recent years. With more homes available, buyers are better positioned to negotiate favorable terms and secure properties that meet their needs and budgets.

The importance of the housing market to the UK economy cannot be overstated. Real estate transactions generate significant activity—not only for buyers and sellers, but also for the many professionals and businesses connected to the sector. Estate agents, surveyors, mortgage brokers, solicitors, builders, and home improvement companies all rely on a healthy housing market for their livelihoods. Slower but steady house price growth can contribute to economic stability by encouraging sustainable investment and supporting consumer confidence.

For existing homeowners, the current environment presents several advantages. A strong but stable housing market means that property values are more likely to be maintained or increase gradually, offering a sense of security and potentially growing household wealth. Homeowners can also benefit from lower loan-to-value (LTV) ratios, which are achieved when the value of their property rises relative to their outstanding mortgage balance. Lower LTV ratios can open the door to better remortgaging options, including access to more competitive interest rates and the ability to avoid costly lenders’ standard variable rates (SVRs).

Given the current low interest rate environment and the potential for rates to rise in the future, now is an opportune moment for homeowners to consider remortgaging. Refinancing can help lock in favorable rates, reduce monthly payments, and provide greater financial flexibility. The process of shopping for remortgages has become increasingly accessible, with many online platforms enabling homeowners to compare deals quickly and easily. By acting promptly, homeowners can secure the best possible terms and avoid the uncertainty of moving onto a lender’s SVR, which is often significantly higher than introductory or fixed rates.

For buyers, especially those entering the market for the first time, the combination of slower price growth, improved affordability, and greater choice creates a uniquely favorable environment. While challenges remain, such as saving for a deposit and meeting lenders’ criteria, the overall outlook is more optimistic than it has been in recent years. The Reuters poll’s finding that 92% of experts expect affordability to improve underscores the widespread belief that the market is shifting in favor of buyers.

The UK housing market is adjusting to new realities, with slower house price growth set to enhance affordability and create opportunities for both buyers and homeowners. As mortgage rates ease, supply increases, and prices moderate, the market is better positioned to support sustainable growth and broader participation. Whether aiming to purchase a first home or considering a remortgage, now is a good time to explore the opportunities presented by these evolving conditions. The outlook is positive for those looking to enter or remain in the UK property market, as the environment becomes more supportive of long-term success and stability.