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, 18 June 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 1 July 2026.
UK Property Market Update
According to Nationwide, UK House price growth slowed to 1.7% last month, not as high as April’s 3.0%, but still trending in the right direction. Prices fell month-to-month, however, dropping to -0.6%, compared to April’s 0.4%. The average house price came in at £278,024, down slightly from £278,880 in April.
Given the uncertainty created by recent developments in the Middle East, along with rising energy prices and higher market interest rates, it was always likely that some of the market momentum seen earlier in the year would ease. Consumer confidence has also taken a hit, with GfK Consumer Confidence Index falling to its lowest level since late 2023 in April, before seeing only a slight improvement in May.
Housing market sentiment has also weakened. The Royal Institution of Chartered Surveyors (RICS) reported a sharp drop in new buyer enquiries in March, pushing the index to its lowest reading since 2023. While conditions stabilised somewhat in April, the measure remained firmly in negative territory.
Looking ahead
Despite lacklustre numbers this month, there have been some encouraging signs for the future. The UK economy is in better shape than many had expected, with economic growth reaching a solid 0.6% quarter-on-quarter during the first three months of the year, while inflation eased more than forecast in April.
That said, the latest developments in the Middle East are likely to weigh on growth and keep inflation higher than previously anticipated during the remainder of the year. The overall impact will depend largely on how long these pressures persist and how policymakers respond.
Even with the influence of external factors, the UK economy and housing market have shown impressive resilience in recent years. Household finances remain relatively healthy, with debt levels sitting at their lowest point relative to income for around two decades. Many households have also built up savings buffers, although the size of those reserves varies considerably.
Housing affordability had also been improving steadily before the recent rise in market rates. Strong wage growth has outpaced house price growth by a comfortable margin, while borrowing costs have been gradually easing.
Although market interest rates have moved higher in recent months, the effect on affordability has been fairly limited so far. Swap rates, which play a key role in fixed-rate mortgage pricing, remain well below the peaks seen in 2023 and are broadly similar to levels experienced during 2024. As a result, only part of the previous affordability gains have been unwound.
This suggests that if geopolitical tensions ease and energy prices begin to normalise over the coming quarters, any slowdown in housing market activity is likely to be temporary rather than the start of a more prolonged downturn.
Mortgage Rate Update
Following the Monetary Policy Committee (MPC) meeting on 18 June, the Bank of England announced that the rate would be held at 3.75%.
The MPC voted heavily in favour of the result, with 7 members opting to keep the rate the same, while two members wanted to raise it to 4%. The committee’s decision was once again influenced by the war in the Middle East and its subsequent disruption to energy distribution and supply, which have been affecting fuel and utility costs for both households and businesses. Inflation is expected to be higher than originally predicted for the foreseeable future, but with progress in US-Iran talks, energy prices appear to be declining. As the MPC monitors the situation, decisions will continue to be guided by the latest information to ensure inflation remains low and stable.
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.
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 – May 2026.
