Propertymark has forecast an improving outlook for first-time buyers, as modest house price growth and falling mortgage rates create more stability in the market.
The property industry professional body expects to see a shift away from house price volatility towards slower and steadier growth.
Lenders continue to trim rates, making monthly payments more manageable for aspiring buyers, but affordability challenges remain, it says.
Lower mortgage rates alone will not fix the structural barriers which put home ownership out of reach for many, Propertymark warns.
These include high house prices, rental costs that limit the ability to save, deposit requirements and slow progress on homebuilding.
Propertymark argues that temporary tax breaks or lower stamp duty thresholds could give a significant boost to activity, as data from previous years shows.
In 2025 there were 920,000 homes sold compared to more than a million in 2021 when the stamp duty threshold was lifted to help encourage sales after lockdown.
It says that higher transaction levels generate a significant knock-on benefit for the wider economy, as home movers spend on white goods, furnishings, home improvements, tradespeople and professional services such as conveyancers, surveyors and financial advisers.
Propertymark chief executive Nathan Emmerson says: “Lower mortgage rates are a positive step and will undoubtedly help many first-time buyers reassess their options.
“Combined with modest house price growth, this shows the market is finding a more sustainable footing.
“However, affordability pressures remain complex, and property tax thresholds have failed to keep pace with rising house prices and wage growth over the past decade, increasing the tax burden on buyers.
“Propertymark believes reform is needed to create a fairer, more responsive property taxation systems across the UK that reduce upfront costs, support first-time buyers, and improve market mobility.
“Alongside this, action to boost housing supply and targeted support for those struggling to save for a deposit will be essential if homeownership is to become a realistic option for more people.”
