Key Takeaways
How have UK rents and house prices shifted since 2025?
The UK average house price reached £273,037 in August 2026, representing annual growth of 0.9%.
However, regional performance varies considerably. House prices rose by 3.2% in the North East and 3.1% in Wales, while the South East recorded a 0.8% annual decline. Rental growth was strongest in the North West, where rents increased by 5.7% year-on-year.
What the new Your First Home Scheme means for first-time-buyers?
Announced in the October 2026 Autumn Budget, Your First Home is a government scheme designed to help eligible first-time buyers purchase new-build homes in England with a minimum 2.5% deposit and a 20% government equity loan.
Our modelling found that 56% of first-time buyers had deposits below 5%. In some regions this meant up to 20% of people in this group could afford the development they originally could not, highlighting the potential relevance of the scheme.
Applications for Your First Home are expected to open in February 2027.
Which UK regions are seeing the strongest house price growth?
The North East recorded the strongest annual house price growth at 3.2%, followed by Wales at 3.1% and Scotland at 2.9%. At the other end of the market, the South East saw prices fall by 0.8%, while the South West remained flat.
These differences highlight the importance of understanding local market conditions when planning development and sales strategies.
How does affordability differ for current homeowners, first-time-buyers and investors?
According to the October 2026 National Buyer Index, 73% of buyers could afford the development they viewed. However, affordability varies significantly by buyer type. 85% of current homeowners could afford the homes they viewed, compared with 69% of investors and 67% of first-time buyers.
This difference is also reflected in typical budgets. Current homeowners had a typical budget of £406,000, compared with £262,000 for first-time buyers – a gap of £144,000. For housebuilders, this reinforces the importance of understanding the purchasing power of different buyer groups and tailoring sales and marketing activity accordingly.
How does buyer behaviour impact sales and marketing efforts for housebuilders?
Around 69% of searches took place while sales offices are typically closed, highlighting the importance of making affordability information accessible outside traditional working hours. With more buyers turning to digital tools to research their affordability in their own time, housebuilders need to utilise new digital-first strategies that can answer their questions instantly, no matter the time of day.
Always-on, automated tools like the budget calculator, shared ownership estimator or home valuation tool can help housebuilders engage their website visitors in a few clicks, and generate more pre-qualified enquiries for your sales team to convert.
Download the October 2026 Homebuyer Index
These findings offer a snapshot of the UK housing market in October 2026, but the full picture reveals much more.
Download the National Buyer Index to explore regional affordability, buyer profiles, investor behaviour and the insights shaping today’s housing market.