With the current rental market presenting challenges, more people are considering getting onto the property ladder by buying their first home. Buying a property is a big step for anyone, and it can be a daunting process for anyone who hasn’t purchased a property, but 2026 just might be the perfect time to buy, with experts pointing to improving affordability.
In 2025, we helped a range of buyers buy property in Liverpool and make the most of it as a prime location to buy property.
At Lyons Estates, we are passionate about helping buyers get on the property ladder, and in this guide, we outline some of the reasons why buying a house in 2026 is shaping up to be a great idea.
UK Mortgage Rates 2026: What to Expect
Expert forecasts indicate that mortgage rates are expected to be lower in 2026, following the gradual downward trend observed in 2025. Lower rates mean it is cheaper to borrow the money you need for your purchase, increasing the purchasing power for first-time buyers.
For those with variable-rate mortgages, monthly payment mortgage costs will likely decrease in line with the base rate, freeing up more money to invest in property renovations.
Property Market 2026: Stamp Duty Changes
The changes to stamp duty look to be positive for first-time buyers, while presenting potential difficulties for those buying a second property. Under new changes to Stamp Duty, the threshold for paying 0% Stamp Duty has dropped from £250,000 to £150,000, meaning that if you are a previous homeowner and you are looking to buy a property, you may face further costs.
Though the 2026 Stamp Duty updates may make property purchase more expensive for existing property owners, for first-time buyers, the updates are not set to affect first-time buyers, with first-time buyers able to claim Stamp Duty Land Tax relief on properties up to £300,000 and with property prices lowering, especially in locations such as Liverpool, most first-time borrows won’t need to worry about Stamp Duty.
UK Housing Supply in 2026
In 2025, a common issue many people looking to purchase property faced was a general shortage of homes for sale in the UK. In 2026, the housing supply is expected to improve, with a more diverse and higher availability of properties through estate agents.
With the market being so uncertain in 2025, a large reason why there was such a lack of properties on the market is that sellers were reluctant to sell in uncertain times, but as the market stabilises, more and more sellers have the confidence to put their properties on the market, meaning that there will be more properties available on the market in 2026.
UK Average House Prices in 2026
With easing mortgage rates, property prices are expected to see modest growth, but there is no expectation of a rapid boom. Prices are expected to continue rising in the coming years, making 2026 a good time to purchase property.
By purchasing in 2026, you’re getting ahead of any potential future booms in property prices, while still enjoying lower mortgage rates.
Location also plays an important role in property prices in 2026, with some areas continuing to become more expensive to purchase property in, while others are stabilising. The North West and North East of England are among the cheapest areas to invest in in 2026, with the south and London in particular expected to experience further property price increases.
First-Time Buyer Schemes
In 2026, there are many schemes available for homeowners to take advantage of. These include:
Permanent Mortgage Schemes
For those looking to get onto the property ladder, in 2026, you’ll be able to make the most of first-time buyer schemes. In July 2025, a new, permanent mortgage guarantee scheme was launched to encourage lenders to offer 95% mortgages.
First Homes Scheme
The First Homes Scheme is now the primary government support for first-time buyers in England. First-time buyers can enjoy discounts of at least 30% (up to 50%) on new-build properties.
In order to be eligible for this scheme, you will need a household income below £80,000 (£90,000 in London), and you must be able to secure a mortgage for at least 50% of the property value. This scheme is fantastic for anyone struggling to get a mortgage together in 2026, but you must fit the eligibility criteria before you’re granted a mortgage.
Shared Ownership
You can purchase a share of a property, typically between 25% and 75%, and pay rent on the remaining portion. Your deposit can be as low as 5% of your share instead of the full property value, making it more affordable. Rent is generally charged at around 2.75% of the property’s value annually. Additionally, you have the option to increase your ownership share over time through a process known as “staircasing.”
This provides a great solution for anyone looking to get on the property ladder in 2026, as it means that you can slowly build yourself up to full ownership without taking on a financial burden that you’re not ready for.
Find Your Dream House With Lyons
As you have hopefully gathered from this guide, 2026 looks as though it will be the best time to make a property purchase to get ahead of any future financial booms and make the most of current schemes that encourage people to get onto the property ladder in 2025.
At Lyons, we’ve helped countless people find their dream home, and we have a range of properties available to purchase. Browse houses to buy Liverpool >
Get in touch with us to find out how we can help you find a property in 2026.
