Buyer's market?

The buyer’s market is back, and even though mortgage rates are still higher than the ultra-lows of a few years ago, buyers now have real bargaining power again. With homes taking longer to sell and a huge choice of properties on the market, sellers are far more open to price cuts and negotiations. That means many buyers could end up getting a better overall deal despite paying a higher rate, especially if rates are then lower when they come to remortgage in years to come.

Stock continues to hit the market at a steady rate. The market is seeing the usual forced sales by deaths and divorces but in addition to this, many small landlords are selling up in fear of new regulations around renters rights and property standards. Buyers on the other hand are starting to take a step back in the wake of increased interest rates, political uncertainty and global economic factors. This is starting to result in what we call a buyers market where the number of potential buyers for each listing drops and vendors consider tactics such as reducing asking prices. Buyers may start to get away with cheeky offers if they can move quickly and investors can pick up a bargain. This isn’t true of everywhere though and demand is still high in areas of typically set for families with good schools. Whereas leasehold properties in buildings with safety issues are hanging about and reducing in price whilst some people wait for the next stages of the leasehold reform act

Now Could Be a Buyer’s Market But Caution Still Matters, The slowdown is exposing a clear pattern: sellers who priced too aggressively are now watching buyers walk away. Homes that would have sparked a frenzy only a few years ago are sitting on the market for weeks, sometimes months, often requiring multiple price reductions before attracting serious interest. For would‑be homeowners who have spent years battling bidding wars, sealed‑bid deadlines, and eye‑watering asking prices, this shift is significant. More stock and slower sales mean buyers finally have room to negotiate something that’s been in short supply for the better part of a decade. But this is not a green light to rush in. It’s a moment to proceed with discipline. No matter how attractive a negotiated price may seem, the mortgage still needs to be affordable not just today, but in the years ahead. And buyers should remember that the property market has a long history of turning quickly, often without warning.

There's a real window opening for buyers, the first time we've been able to say that in years. Homes are taking around two and a half months to sell, listings are higher than they've been in over a decade, and almost a third of properties on the market have already had their price cut. Sellers are the ones sweating now, not buyers.

There's a myth we're still in a rate crisis. We're not. Two-year fixes are around 5.18%, five-year around 5.41%. Higher than the rock-bottom rates of 2021, but pretty much in line with where they've sat since 2023, and finally steady.

We tell our clients not to try to time the bottom of the market. The bigger win is the discount on the asking price. The price you pay is locked in forever, the rate isn't. Knock 5 to 10% off and you also drop into a cheaper deposit bracket, which unlocks better rates every time you remortgage.

There is a lot of choice for homebuyers at the moment and providing they act relatively quickly they can negotiate discounts. Not all transactions need to take a long time, especially with all of the empty flats and houses coming on the market from landlords selling up. The cheapest mortgage rates start from 4.5%, which is pretty reasonable, and there are a lot of first-time buyer schemes designed to help younger people get on the property ladder, even if they have a relatively small deposit. The Bank of Mum and Dad has been as busy as ever either handing over cash for a deposit or going on mortgage applications to boost the amount their adult kids can borrow.

I think when rates are high it can be an ideal time to buy. Purchasing a property with the knowledge that you can afford the mortgage now and there is a chance the monthly cost could decrease in a few years is quite nice situation to be in. Higher rates also mean more pressure on house prices as the mortgage affordability is squeezed. Therefore it may be possible to get a great deal now and then benefit from possible rate drops further down the line.