House price growth softens in January: “Finding a deposit is a permanent struggle for first-time buyers.”

"Affordability continues to be an issue for many prospective borrowers as does finding a deposit. With rents so high, saving for a deposit is like constantly swimming upstream. Slightly higher mortgage rates have been a theme in January following the bond market turbulence earlier on in the month. In spite of that, activity levels have been robust all the way up the property ladder as people are always keen to be in their new homes in late spring or early summer. "

"Despite the annual rate of growth dipping, it's been an energetic January compared to last year, with demand and enquiry levels resilient overall. Demand has not been dampened despite a lack of economic confidence and the reality that virtually no non-auction transactions starting now will complete prior to the Stamp Duty changes in April. We expect house prices to continue to hold their own with no signs of abating. There's simply too much demand and nowhere near enough supply. As ever, affordability remains an issue as does finding a deposit given the high level of rents. "

"In January, the property market had real momentum. Demand is steady, stock remains tight and buyers are pressing on despite affordability challenges. First-time buyers and movers are still battling deposit and affordability hurdles, but stabilising rates and looming stamp duty changes are keeping them in the game. Meanwhile, remortgaging is surging—not just for rate switches, but as homeowners tap into equity for everything from renovations to debt consolidation. Buyers may be cautious, but they’re active—and if January is a sign of things to come, 2025 is set to be a big year for the market. "

"The Bank of Mum and Dad has never been as important. Finding a deposit is a permanent struggle for first-time buyers. In January, there were expectations for a buoyant start to the year and for lenders to come out firing but the bond market sell-off injected some serious uncertainty into the market. It wasn't the start to 2025 that many were hoping for and the focus is now turning to the Bank of England's next Monetary Policy Commitee meeting on 6 February. The economy is in terrible shape and businesses and consumers alike need rate cuts to take off some of the pressure. "

"House prices rose very slightly on the month according to the Nationwide but January has been overshadowed by uncertainty in the markets and many lenders repricing up. Borrowers will be looking to the Bank of England to deliver rate cuts and potentially send mortgage rates down again. The economy is facing countless headwinds that will strengthen once many of the tax changes announced in the Budget go live. There's still demand but we need lower rates to really get the market moving. For many would-be homeowners, the only way to save for that deposit is to turn to their family. "