Zoopla research published on 15 October 2026 shows 51% of two and three-bedroom houses are now priced within reach of an average-income household, up from 45% a year ago, though mortgage rates above 5% are holding back sales.
The Bank of England and the FCA have permanently removed the 15% firm-level cap on high loan-to-income lending from 28 October 2026, replacing it with a rolling four-quarter measure that gives lenders more room to approve larger loans.
Skipton Building Society says one in three renters are saving £100 a month or less towards a home deposit, leaving them on a 35-year path to buy against an average first-time buyer deposit of £41,403.
The FCA’s latest mortgage rule review could improve exit routes for landlords by widening access for first-time buyers and other underserved borrowers.
Zoopla says first-time buyers are buying pricier homes even as wider demand softens, a sign committed buyers are still keeping the sales market moving.
