Is Now the Time to Move? Over Half of UK Family Homes Are Becoming More Affordable
The UK property market is showing signs of changing, with more family homes becoming affordable to households on average incomes. However, rising mortgage rates and ongoing financial uncertainty continue to influence how buyers, sellers and landlords approach their next move.
For anyone considering buying, selling, renting or investing in property, the latest housing market figures offer an interesting insight into where opportunities may be emerging.
New research from Zoopla, published in October 2026, reveals that 51% of two and three-bedroom houses for sale across Great Britain are now priced within reach of a household earning an average combined income. This represents an increase from 45% a year ago, suggesting that more buyers could have a wider choice of homes than they did in 2025.
However, there is another side to the story. Mortgage rates have climbed above 5%, and the number of agreed property sales is running 9% below last year's level. This highlights a significant challenge facing the market: although more homes may be affordable based on their asking prices, the cost of borrowing is continuing to influence buyers' decisions.
So, what does this mean for the wider UK property market, and how could these changes affect homebuyers, vendors, landlords and tenants?
Let's explore the latest figures and what they could mean for your property plans.
1. More Than Half of Britain's Family Homes Are Now Within Reach
According to Zoopla's latest research, a household earning a combined annual income of £53,500 could afford a property priced at up to £301,000, based on borrowing 4.5 times gross annual income and providing a 20% deposit. Using this measure, 51% of two and three-bedroom houses currently advertised for sale across Great Britain fall within that price threshold, compared with 45% in 2025.
The improvement is encouraging for prospective buyers who may previously have struggled to find a suitable family home within their budget. Several factors are contributing to this change, including incomes rising faster than house prices in many areas, slower property price growth and a greater choice of homes coming onto the market.
For buyers, this could mean more opportunities to explore different locations, compare properties and negotiate on asking prices. Rather than feeling pressured to make an immediate decision on the first suitable home, buyers in some areas may have more time to assess their options.
However, it is important to understand that these figures represent affordability based on a set of assumptions. They do not guarantee that every household earning £53,500 will qualify for a £301,000 mortgage. Lenders consider several factors, including credit history, existing financial commitments, employment circumstances, deposit size and individual affordability. The actual amount someone can borrow will depend on their circumstances and the lender's criteria. The deposit requirement is also significant. A 20% deposit on a £301,000 property would amount to £60,200, before allowing for legal fees, surveys, moving costs and any applicable property taxes.
The takeaway? More homes may be within reach, but understanding your complete buying budget remains essential.
2. Why Are Buyers Still Hesitant Despite Improving Affordability?
Although property affordability has improved on paper, higher mortgage rates are making the cost of buying more challenging. Zoopla's latest figures indicate that average mortgage rates have risen from around 4% at the beginning of the year to approximately 5.2%. Over the same period, agreed sales have fallen by 9% compared with the previous year. The difference between the asking price of a property and the cost of financing it is becoming increasingly important.
A home might now be listed at a price that fits within a buyer's borrowing assumptions, but higher interest rates can make the monthly repayments considerably more expensive. For households already managing rising living costs, this additional expense can be enough to delay a move or encourage them to consider a less expensive property. Buyers may also be concerned about future economic conditions, the possibility of further mortgage rate changes and the financial commitment involved in taking on a long-term home loan.
As a result, some prospective purchasers are taking a more cautious approach. They may be arranging additional viewings, negotiating more firmly or waiting until they feel confident about their finances. The market has not stopped moving, but buyers and investors are increasingly focused on value, affordability and long-term financial sustainability.
3. Regional Differences: Where Are Homes Becoming More Affordable?
One of the most important findings from the research is that housing affordability varies significantly depending on where you want to live. While some parts of Britain offer a substantial choice of family homes within the £301,000 threshold, other areas remain considerably more expensive.
The North West and West Midlands: Opportunities for Buyers
For buyers looking in the North West, the figures are particularly encouraging. Around 71% of two and three-bedroom houses in the region are priced within the research's affordability threshold, an increase of 4.5 percentage points over the previous year.
This suggests that buyers searching across the region could have a reasonable selection of properties to consider, although availability and prices will vary between towns, neighbourhoods and property types.
The West Midlands has also seen a notable improvement, with the proportion of affordable homes rising to 64%, up by 7.1 percentage points.
Southern England: Improving Affordability, but Challenges Remain
Some of the biggest improvements have occurred in southern England.
The South West recorded the largest increase, rising by 9.8 percentage points to 47%. The East of England increased by 9.2 percentage points to 39%, while the South East rose from 16% to 23%. These changes suggest that slower house price growth and rising incomes are helping bring more properties within reach.
However, affordability remains more challenging than in many northern regions. In London, just 0.5% of two and three-bedroom houses for sale are priced below £301,000, while the average asking price for these properties stands at £542,500.
This demonstrates how differently buyers can experience the property market depending on where they live. For people who have flexibility over their location, comparing several areas could help identify opportunities that better match their budgets. For those who need to remain close to work, family or other commitments, realistic budgeting and professional guidance become even more important.
4. Should You Wait for Mortgage Rates to Fall?
One of the biggest questions facing prospective buyers is whether to move now or wait in the hope that mortgage rates will become more favourable. It is understandable to want to secure a lower interest rate, particularly when borrowing costs can have a significant impact on monthly repayments. However, waiting does not guarantee a better outcome.
Mortgage rates may change in response to inflation, financial markets, lender pricing and wider economic conditions. House prices and the availability of suitable properties can also change while a buyer waits. If borrowing costs fall, buyer demand could strengthen, potentially increasing competition for some properties. Equally, prices may remain subdued in certain areas, creating opportunities for buyers who are ready to proceed.
There is no reliable way to predict exactly how these factors will develop.
Instead of trying to time the market perfectly, buyers should focus on whether a purchase is affordable, whether the property meets their needs and whether they are comfortable with the financial commitment. Anyone considering a mortgage should understand the repayments they would face under the proposed deal, check the terms carefully and consider how their finances might cope with future changes.
For homeowners approaching the end of a fixed-rate mortgage, reviewing available options early can also help them prepare for a potential change in repayments.
The best time to move is not necessarily when mortgage rates reach their lowest point. It is when the property, the finances and the circumstances make sense for you.
What Could Happen Next in the UK Property Market?
Looking ahead, affordability is likely to remain an important factor influencing housing activity.
Zoopla's findings suggest that slower house price growth relative to incomes could continue to bring more properties within reach of some households. However, higher borrowing costs remain a challenge, and there is no guarantee that improved affordability will translate into a rapid increase in sales. The balance between the number of properties for sale and the number of active buyers will also be important.
Where supply is relatively high and demand is more subdued, buyers may have greater choice and sellers may need to be more flexible on price. Where demand remains strong and suitable homes are limited, competition can remain significant. Regional differences are likely to continue playing a major role. The North West, for example, has a different affordability profile from London and the South East, meaning that buyers and sellers should not assume national trends will apply equally to their local area.
Landlords will also need to consider borrowing costs, rental demand and the wider expenses associated with property ownership. For tenants, the relationship between rents, household incomes and the cost of buying will remain important when deciding whether to continue renting or explore homeownership. Rather than expecting one national trend to determine every outcome, it is more useful to monitor local conditions and review personal plans as circumstances change.
Final Thoughts: More Choice, but the Right Advice Still Matters
The latest Zoopla research provides an encouraging sign for the UK housing market, with 51% of two and three-bedroom houses now priced within reach of households earning an average combined income, compared with 45% a year ago.
Although improved affordability is positive, mortgage rates above 5% and lower levels of agreed sales show that challenges remain.
The property market is constantly changing, but you do not have to navigate those changes alone.
With the right information, a clear understanding of your circumstances and professional guidance where needed, you can make more informed decisions about your next move.
Thinking of buying, selling, renting or investing in property? Call us today on 0121 681 6327. We'd be happy to discuss your situation and help you explore your options.