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.
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Approved by Best Practice IFA Group on 14 May 2026.
UK Property Market Update
According to Nationwide, UK House price growth picked up to 3% last month, building on the momentum from March’s 2.2% growth. Prices fell from month-to-month, however, falling to .4%. The average house price came in at £278,880, up slightly from £277,186 in March.
Despite renewed geopolitical tensions in the Middle East and a fresh spike in energy costs, the UK housing market has shown an unexpected degree of stability after losing momentum earlier in the year.
What makes this particularly notable is the backdrop of weakening consumer confidence. GfK’s main confidence measure has slipped to its lowest point since the end of 2023, highlighting growing concern among households about both the wider economy and their own finances over the next 12 months.
Confidence within the property sector itself has also cooled. Data from the Royal Institution of Chartered Surveyors showed a marked decline in new buyer enquiries during March, leaving activity at its weakest level in more than two years. Higher borrowing costs, combined with greater economic uncertainty following the outbreak of conflict, appear to have weighed on demand.
Even so, the market has remained more resistant than many expected.
What is making the market so durable?
One reason for the market’s durability may be the comparatively healthy position of household finances. Overall debt levels, relative to income, are close to their lowest point in around 20 years, while many households continue to hold savings accumulated over recent years — although the distribution of those savings remains uneven.
Affordability has also improved compared to previous years. Wage growth has generally outpaced house price growth, helping to ease some of the pressure on buyers, while mortgage rates had been gradually edging lower before recent volatility returned to financial markets.
Although swap rates — which heavily influence fixed mortgage pricing — have moved upwards again in recent months, they are still comfortably below the peaks seen during 2023. In practice, that means borrowing costs have risen, but not to levels severe enough to erase the affordability gains made over the past couple of years.
Looking ahead
The outlook for the future remains uncertain. Rising energy prices and ongoing instability in the Middle East are expected to place additional strain on economic growth and could keep inflation elevated for longer than previously anticipated. Much will depend on how prolonged the disruption becomes and how policymakers respond.
That said, both the UK economy and housing market have repeatedly demonstrated resilience through recent periods of instability. If energy markets settle and geopolitical tensions ease in the months ahead, any slowdown in housing activity may prove temporary rather than the start of a more prolonged downturn.
Mortgage Rate Update
Following the Monetary Policy Committee (MPC) meeting on 30 April, the Bank of England announced that the rate would hold at 3.75%.
The MPC vote was almost unanimous – all but one member voted in favour of holding the Bank Rate, with their vote going towards a .25% increase. This decision was influenced by the war in the Middle East and its subsequent disruption to energy distribution and supply, which will undoubtedly affect fuel and utility costs for both households and businesses. As a result, inflation is expected to be higher than originally predicted for the foreseeable future. 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, 18th June 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 fist 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 – April 2026.
