Monitoring the housing market and activity in the mortgage market, is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price & Mortgage Update gives you a summary of what the experts are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial product. Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Information correct at the time of writing, 22 July 2026 and may be subject to change.
Dental & Medical Financial Services is not responsible for the accuracy or content of third-party sources.
Approved by Best Practice IFA Group on 22 July 2026.
UK Property Market Update
According to Nationwide, UK House price growth picked up last month, rising to 2.2% from 1.7% in May. Prices month-to-month were flat, dropping to -0.0%, compared to May’s 0.6%. The average house price came in at £277,484, down slightly from £278,024 in May.
Recent months have seen the housing market lose a little momentum, which is hardly unexpected given the uncertainty created by events in the Middle East. The resulting rise in energy prices, alongside higher market interest rates, has inevitably weighed on confidence. Consumers have become more cautious, sentiment across the housing market has softened, and mortgage approvals declined noticeably in May.
Although geopolitical tensions remain elevated, the signing of a memorandum of understanding between the US and Iran has helped ease concerns in the energy markets. As a result, oil prices have moved back towards the levels seen before the conflict escalated.
Looking Ahead
If energy prices continue to settle, the Bank of England may not need to increase interest rates as much as previously expected, or perhaps avoid further rises altogether. This outlook has been strengthened by recent inflation figures, which have consistently come in lower than forecast.
Market expectations around the future path of the Bank Rate have also shifted in recent weeks. This has contributed to a fall in the market interest rates that influence fixed-rate mortgage pricing, offering some welcome relief for borrowers.
Should these trends continue, they are likely to improve affordability and gradually rebuild household confidence. That, in turn, could support a recovery in housing market activity over the coming months, provided domestic political uncertainty does not begin to weigh more heavily on consumer sentiment.
Positive annual growth recorded across every UK region
The latest quarterly regional house price data shows that every one of the UK’s thirteen regions recorded annual house price growth. Most regions saw relatively modest increases, with annual growth sitting between 0% and 4%.
Northern Ireland continued to stand apart from the rest of the UK. Annual house price growth reached 8.6%, almost four times the UK-wide average of 2.2% during the second quarter. This strong performance mirrors trends seen in Ireland’s border regions, where demand has remained particularly resilient.
While encouraging for homeowners, sustained price growth has also made homes less affordable in Northern Ireland. The typical mortgage payment for a first-time buyer now accounts for around 31% of average take-home pay, compared with 24% in the second quarter of 2022. Even so, this remains slightly below the UK average of 33%.
Property values in Northern Ireland have also continued to close the gap with the rest of the UK. A typical home there is now valued at around 80% of the UK average, up from 70% in the first quarter of 2024. However, prices are still well below the market peak of 125% of the UK average reached in 2007.
Elsewhere, Scotland and Wales both experienced a modest acceleration in annual house price growth during the second quarter, with each recording growth of 3.5%. England also saw an improvement, although gains remained more subdued, with annual growth increasing to 1.5%, up from 0.9% in the previous quarter.
Across Northern England, which includes the North, North West, Yorkshire and The Humber, the East Midlands, and the West Midlands, average house prices rose by 3.1% year on year. The North West once again led the way within England, delivering annual growth of 3.9%, supported by continued strength across areas such as Greater Manchester, Lancashire, and Cheshire.
In contrast, Southern England continued to see much slower growth. Average prices across the South West, Outer South East, Outer Metropolitan, London, and East Anglia increased by just 0.7% over the year. London remained the strongest-performing southern region, although annual growth was still relatively modest at 1.6%. Neighbouring areas saw only marginal increases, with the Outer Metropolitan region recording growth of 0.3% and the Outer South East edging up by just 0.1%.
Mortgage Rate Update
Bank Rate Decision
It’s crucial to stay informed by monitoring the British economy and global developments closely, as these factors majorly influence the Monetary Policy Committee’s (MPC) decision-making. Also taken into consideration are the speed at which prices are rising, the pace of economic growth, and employment statistics.
The next decision will be announced on Thursday, 30 July 2026, when experts predict that the MPC will maintain its “wait and see” approach and vote to maintain the current bank rate of 3.75% once more. Of course, nothing is guaranteed though so keep an eye on our website for more information at the end of the month!
Mortgages for Doctors and Dentists – Try Our Finder Tool
If you are planning to buy or sell property, contact an advisor for personalised mortgage advice.
Use our new and updated Mortgage Tool to search for a deal that suits your circumstances.
At Dental & Medical Financial Services, our advisers are dedicated to helping our clients select the right mortgage deal for your needs. If you are ready to take the first step toward home-buying, contact us today.
Stay in the know
If you’re planning to buy or sell property this year, check back monthly for our regular update on the nation’s property prices and mortgage rates and contact one of our advisers for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for their needs. If you’re ready to take the first step toward home-buying, get in contact with us today.
Sources
(1) Figures quoted from Nationwide House Price index – June 2026.
