As the first snowdrops begin to appear, many buyers start thinking about a fresh start and for some, that means a new home. January often marks a reset, and this year the property market is already showing signs of renewed momentum.

From more affordable mortgage rates to the after-effects of the Autumn Budget, here’s what early-year buyers need to know as they begin their search.

A busier start than usual

Traditionally, the property market takes its time warming up after Christmas, with many buyers and sellers waiting until spring to take action. However, this January is shaping up differently.

In the months leading up to November’s Autumn Budget, many people adopted a cautious, wait-and-see approach, delaying major financial decisions amid uncertainty around tax changes and borrowing costs. Now that the Budget has been delivered and the picture is clearer, many of those delayed plans are beginning to resurface.

As a result, market activity is picking up earlier than normal. More properties are coming to market and buyer enquiries are increasing too. If this momentum continues, the market could move faster than many expect in the first quarter of the year.

If you’re planning to buy or sell, preparation will be key. That means:

• Being clear on your property requirements.
• Researching mortgage options early.
• Getting paperwork in order if you’re selling.
• Acting decisively when the right opportunity appears.

Mortgage rates remain supportive

Mortgage affordability improved significantly over the past year, as lenders relaxed criteria and competition increased. Fixed-rate deals became more accessible, with some starting from around 3.51%.

This trend was reinforced in December, when the Bank of England cut the base rate to 3.75%, easing borrowing costs further. With industry experts predicting the possibility of additional rate cuts later this year, conditions for buyers are likely to remain supportive, at least in the near term.

That said, mortgage products vary widely and it’s important to review the full range of options before committing. Taking professional advice can help ensure the deal you choose suits both your short-term budget and long-term plans.

First-time buyers continue to lead the market

First-time buyers remain the driving force behind market activity. In 2025, they accounted for around two in every five property purchases and that trend is expected to continue into this year.

Several factors are supporting this group:

• Wage growth is expected to outpace house price growth.
• Mortgage affordability has improved.
• A wider choice of homes is coming onto the market.

If you’re buying your first home, it’s also worth exploring government-backed first-time buyer schemes, which can help reduce the upfront cost and in some cases, allow you to purchase a home for up to 50% less than its open market value.

At the upper end of the market, conditions are more subdued. The introduction of an annual surcharge on homes valued above £2 million is expected to dampen demand in this segment, particularly in London and the South East.

Market conditions vary by location

As always, local market conditions matter. While national trends provide useful context, the experience of buyers can differ significantly depending on where they are looking.

A clear north–south divide remains. Recent data shows small price falls of up to 0.6% across parts of southern England, while regions such as the North West are seeing price growth of up to 2.9%. Higher stamp duty and moving costs continue to weigh more heavily on buyers in London and surrounding counties, affecting affordability and demand.

This makes local knowledge invaluable, especially when deciding how much to offer and how competitive the market truly is in a specific area.

Get local expertise from Seths

Whether you’re buying your first home, upsizing, downsizing or simply exploring your options, understanding your local market is key to making confident decisions.

If you would like tailored advice on buying or selling, speak to our experienced team at Seths. Our local experts can guide you through current market conditions, pricing and next steps, helping you move forward with clarity and confidence.

📞 Contact Seths today on 0116 266 9977 to start your property journey.