It’s one of the busiest times of the year in the UK housing market, and despite a little stickiness, there’s a feeling of a sense of movement from both buyers and lenders. If you’re thinking of buying, selling, or just keeping tabs on what’s going on, now’s a good time to get clear on the facts.
Activity across the board is generally up. Rightmove and Zoopla both report a steady rise in supply, demand, and transaction volumes compared to this time last year. Buyers are slowly returning, sellers are feeling more confident, and deals are getting done.
If you’re currently exploring property for sale in Purley, Croydon & Greater London, it’s a promising time to book viewings and make sure your mortgage options are in place. Stock levels are improving, which means a wider choice of homes and less fierce competition than we’ve seen in previous months.
Mortgage data backs up the trend with more buyers getting approved. The value of new mortgage commitments has also edged up, showing that buyers are willing (and able) to stretch slightly further to secure the right home.
That said, speed is still an issue. Around a quarter of purchases are taking 16 weeks or more to reach exchange. It’s a good reminder that being organised matters. A well-prepared buyer or seller has a much better chance of keeping things on track.
Interest Rates: Moving in the Right Direction
One of the biggest confidence boosters in the current market is the direction of interest rates. After peaking at 5.25%, the Bank of England base rate has now dropped to 4.25%, and despite no current movement, forecasters expect it to fall further in the coming months. There’s even talk of it dipping to 3.5% by the end of the year.
Some lenders have already started adjusting their mortgage rates in anticipation, making it an ideal time for buyers to lock in competitive deals. If you’re browsing property for sale in Purley, Croydon & Greater London, this shift could give you just the headroom needed to make an offer.
There’s no one-size-fits-all answer to the question of timing your sale, but here are some factors to help guide your decision:
Interest rates are set to fall again which could boost buyers' confidence and budgets
You may be able to test a slightly higher asking price as the market strengthens
Buyers aiming to be in by Christmas often act quickly in late summer or early autumn
Why acting now might be better:
A temporary inflation spike is forecast for the autumn, which could unsettle buyers
The autumn budget could create policy uncertainty
A surge in landlord sales (due to legislative changes) may increase local competition
Whatever your choice, remember that the process itself can take months. Listing your home now doesn’t mean moving next week. It just means getting the wheels in motion and giving yourself options.
Mortgage lenders are gradually introducing changes that reflect how buyers’ needs have evolved. While these updates won’t all hit immediately, they signal a more flexible future.
Loan-to-income ratios:
Lenders are becoming more open to lending slightly more to applicants with steady income, even if it’s lower, provided repayments remain affordable.
Stress test adjustments:
Some lenders are easing their ‘worst-case scenario’ interest rate checks, allowing more borrowers to qualify for larger loans.
Longer mortgage terms:
A 30-year term is now common, especially for first-time buyers. It keeps monthly repayments lower, which is often the key to affordability. From next year, rules should make it easier to shorten your mortgage term later without hefty penalties.
Product innovation:
Look out for green mortgages (linked to EPC ratings), home improvement loans, and extended fixed rate offers. A good mortgage broker can match you to the right deal for your situation.
As your local estate agent in Purley, Croydon & Greater London, we recommend CBM Financial to help you with your mortgage requirements. We can connect you and make your search for property for sale in Purley, Croydon & Greater London much smoother.
A lot of the restrictions placed on lending were introduced in 2014, when the financial landscape looked very different. With house prices having risen sharply since then and wage growth lagging behind, buyers have been squeezed by outdated lending rules. The current changes aim to correct that and create a more realistic, fairer system for today’s borrowers.
Whether you're a first-time buyer, looking to move up the ladder, or considering a downsize, this market is finally showing signs of life after a period of uncertainty.
If you're planning a move soon, now’s the time to get organised. Speak with us - your experienced estate agent in Purley, Croydon & Greater London, sort your finances, and make sure you’re ready to act when the right property comes up. There’s a sense that confidence is returning, and that’s often when the best deals are done.
Shinerocks are your local property experts for the Purley, Croydon & Greater London area. Call us on 020 8660 2010 or email enquiries@shinerocks.co.uk to chat with a member of our friendly and experienced team.
Note: The information in this article is based on data as of May/June 2025 and may change. Always seek professional advice for specific circumstances.
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