After several years of economic uncertainty, higher borrowing costs and a cooling property market, many buyers are asking 'is now a good time to buy a house?' The reality is there isn't a one-size-fits-all answer.
Whilst no one can predict exactly what the housing market will do next, today's conditions offer opportunities for buyers that weren't available during the highly competitive market of 2021 and 2022.
The latest market data suggests London is moving into a more balanced phase. According to the latest HM Land Registry UK House Price Index, the average property price in London was around £553,000 in April 2026, making it the only English region to record an annual fall in house prices (down 2.1% year on year).
Meanwhile, Rightmove reports that buyers have a wide choice of homes, with housing stock remaining at historically high levels, while asking prices saw their largest June decline in over a decade, giving many purchasers greater scope to negotiate.
The quick answer: is now a good time to buy in London?
For many buyers, yes – provided you're financially ready and planning to stay in your home for the medium to long term.
While it's natural to wonder whether you should wait for house prices or mortgage rates to fall further, trying to perfectly time the market is rarely possible.
London's property market in 2026 is very different to the fast-moving conditions seen during the pandemic. Buyers generally have more choice, homes are taking longer to sell, and sellers are often more willing to negotiate on price or offer incentives. According to Rightmove's June 2026 House Price Index, asking prices fell by 0.6% in June – the biggest June price drop in 14 years – as sellers competed for buyers.
Rightmove also reported that the average two-year fixed mortgage rate had fallen slightly to 5.07%, helping to improve affordability for some purchasers.
Although borrowing costs remain higher than the record lows seen in 2021, lenders have become increasingly competitive.
That means buyers may now find themselves in a stronger negotiating position than they would have been during the peak of the market.
What the London housing market looks like in 2026
London's housing market has entered a more balanced phase after several years of rapid change.
Rising interest rates cooled demand across 2023 and 2024, but more stable borrowing costs and increased housing supply have helped create conditions where buyers generally have more choice and less pressure to make rushed decisions.
House prices and buyer competition
The latest HM Land Registry UK House Price Index shows that the average property price in London was £553,000 in April 2026.
While this remains the highest average house price of any UK region, it represents an annual fall of 2.1%, making London the only English region to record a year-on-year price decline at that time.
Market data also suggests that buyer competition has eased. Zoopla's House Price Index reports that annual UK house price growth has slowed to around 1.4 - 1.5%, with London and the South East expected to remain broadly flat or see modest price falls during the second half of 2026. At the same time, housing supply has improved, giving buyers more choice and reducing the pressure to compete in bidding wars.
That doesn't mean buying in London has suddenly become easy. Affordability remains one of the biggest challenges, particularly for first-time buyers.
Mortgage rates and what they mean for affordability
Mortgage rates remain one of the biggest factors influencing whether buyers decide to move in 2026.
Rates have become more stable over the past year as inflation has eased and the Bank of England has gradually reduced its base rate.
The result is a more predictable lending environment. Lenders are offering a wider range of fixed-rate mortgage products, and competition between banks has helped bring down the cost of borrowing from the peaks seen in 2023.
According to Rightmove's House Price Index the average two-year fixed mortgage rate fell to around 5.07% in June 2026, while the average five-year fixed rate also declined, helping to improve affordability for some buyers.
For many the key question isn't whether mortgage rates will fall further, but whether they can comfortably afford repayments at today's rates.
If your finances are stable and you've found a home that meets your long-term needs, waiting for slightly cheaper borrowing may not outweigh the benefits of securing a property in a less competitive market.
Speaking to an independent mortgage adviser can also help you compare products and understand what repayments would look like.
Why waiting is not always the safer option
Waiting can often feel like the sensible choice; the hope is that house prices will fall further or mortgage rates will become cheaper.
Delaying a purchase however does not always mean a better deal. The housing market is difficult to predict, and buyers who wait may find that conditions change in unexpected ways.
While prices may fall in some areas, they could also remain stable or start rising again if demand increases.
Similarly, lower mortgage rates in the future are not guaranteed, and any reduction in borrowing costs could be offset by higher property prices or increased competition between buyers.
There is also the cost of continuing to rent while waiting. According to ONS data, private rental prices in London have continued to increase in recent years, meaning some buyers may find that they are spending more on rent while trying to save for a deposit.
For buyers who are financially ready, purchasing in a more balanced market can sometimes be more beneficial than waiting for the “right” moment.
How Shared Ownership can help London buyers get started
For some buyers, the biggest barrier to buying in London is not necessarily the idea of paying a mortgage, but the size of the deposit and borrowing needed to buy a home outright.
Shared Ownership can help bridge that gap by giving eligible buyers the option to purchase part of a home and pay rent on the remaining share.
This method of buying can make home ownership more achievable in a city where full market prices are often out of reach for first-time buyers.
Buying a share instead of the full property value
With Shared Ownership, you buy an initial share of a home rather than the full property. With Peabody, this could be between 25% and 75%, depending on the home.
You then take out a mortgage on the share you buy, while paying rent to the housing provider on the share you do not yet own.
For example, if you bought a 25% share of a £400,000 home, your mortgage and deposit would be based on a £100,000 share rather than the full £400,000 value.
That does not remove all buying costs, but it can reduce the upfront amount needed and help you take a first step onto the property ladder.
Before applying, it is a good idea to speak to a mortgage adviser and complete an affordability assessment so you can understand what share you may be able to buy comfortably.
Key checks before deciding to buy
A home is a long-term commitment, so it is worth checking that the property, location and monthly costs work for your circumstances now and in the years ahead.
Some key checks are:
- Your affordability: Check what you can borrow, what deposit you need and whether the monthly payments are comfortable at current rates.
- Your time frame: Buying makes more sense if you plan to stay in the home for several years.
- The full monthly cost: Include mortgage repayments, rent on any remaining share, service charges, insurance, council tax, utilities and regular household spending.
- The location: Think about transport links, local amenities, schools, green areas and whether the place suits your day-to-day life.
Frequently asked questions about whether now is a good time to buy in London
Waiting can make sense if you need more time to save, improve your affordability or feel unsure about your job security.
But it’s difficult to time the market perfectly. House prices may fall further in some parts of London, but they could also level out or rise again if mortgage rates ease and buyer demand increases.
If you find a home that suits your needs and the monthly costs are affordable, buying in a less competitive market could be more practical than waiting for the “perfect” moment.
Mortgage rates may fall slightly during 2026, but a big drop is not guaranteed.
Some lenders have reduced fixed rates, but forecasts remain uncertain, and rates are still higher than the very low levels seen in 2020 and 2021.
Buyers should focus less on guessing future rates and more on whether repayments are affordable at today’s rates. The Bank of England held Bank Rate at 3.75% in February 2026 and said further easing depends on the inflation outlook.
Shared Ownership can be a good option if you want to buy in London but can’t afford to purchase a home outright.
It involves buying an initial share and pay rent on the remaining share, which can reduce the deposit and mortgage needed upfront.
It can be particularly useful for first-time buyers in London, where full market prices are often difficult to reach.
