Is now the right time to buy your first home, or should you keep renting?

If you are a first-time buyer, every time a news alert flashes on your phone, you get another surge of panic. Rising mortgage rates, uncertainty over the Renter’s Rights Bill and constant negative headlines about the UK housing market mean it’s only natural that you’ll start to wonder if you’ll ever pick up the keys to your own home.  

Here’s the question everyone is asking us right now: “Is it the right time to buy a home or will I be better off to keep renting and wait a little longer?” 

We’d love to be able to say that this is the ‘perfect moment to buy a home’, but we’re always honest with you, and that perfect moment doesn’t exist.  

As experienced mortgage brokers, we always tell first-time buyers to focus less on market timing and more on whether you feel financially and emotionally ready to take that next step.  

Of course, you’re going to have serious questions about what’s happening that’s beyond your control, from future interest rate changes to global politics. To help set your mind at ease, we’re going to talk through some of the key issues to help you decide whether it’s time to buy a house or whether you should continue to rent for a little longer.  

The market factors affecting first-time buyers that you cannot control 

Let’s start with the main issues that are outside of your control. These are political and global issues affecting the UK housing market and mortgage availability. Over the years, we’ve seen it all and come through it (relatively) unscathed, so it’s important to acknowledge these issues and recognise how they could impact your affordability, without feeling pressured to hold off “until the timing is right.” 

How is the Renters’ Rights Bill affecting renters and first-time buyers? 

In the UK, the Renter’s Rights Bill will come into effect from May 2026. It’s specifically designed to offer more protection for those renting their homes. We won’t get into all the details here, but Shelter has published a useful explainer guide.  

If you’re renting your home, you might be feeling unsettled by this because there’s a risk that your landlord could decide to sell up at little notice, or they could use it to justify a rent increase.  

Contrary to what social media may have suggested, there hasn’t been a huge exodus of landlords exiting the rental market. Instead, we have seen a gradual shift, with some landlords already choosing to sell due to rising mortgage costs, tax changes and tighter regulations rather than the Renters Rights Bill alone. This has been happening for some time, which means much of this uncertainty is already reflected in today’s housing market.  

While it is natural for first-time buyers to hope this might lead to lower-priced homes becoming available, housing is still driven by supply and demand. There may be some local variations, but in general, we do not expect large or sudden reductions in house prices due to the Renters’ Rights Bill.  

Global economic uncertainty and its impact on UK mortgage rates 

We know you’re worried about how the global economy and geopolitical issues are affecting your chance of owning your own home. We’ve all seen the headlines of lenders raising their rates following the start of the war in Iran, and at the time of writing, we have no way of telling how this could change in the near future.  

The good news is that mortgage affordability is about more than just headline interest rates. We’ve seen wages rise, borrowing criteria have become more flexible than ever, and the market is resilient. 

Yes, rates rose very sharply in the first few weeks of the war in Iran, but they haven’t continued to rise. In fact, they’ve started to stabilise, and, in some cases, they are even showing signs of falling. It was scary to see how much they changed, but as we said earlier, we’ve seen it before, managed it, and come through it. 

If you’re taking a mortgage term out over 30-40 years, you will see multiple issues rise and fall. The key thing to remember is that if you can afford your mortgage now and plan to stay in your home long term, short-term economic shocks matter far less than they might feel in the moment. 

Understanding the things you can control when buying your first home 

While these factors sit largely outside your control, they are only one part of the picture, and many first-time buyers have more influence over their mortgage options than they realise. 

Here are a few things you may not realise.  

Can rent payments help you get a mortgage? 

This is an exciting development for potential first-time buyers who have been renting for two reasons. Firstly, having a proven track record of consistent rental payments will improve your credit score; more excitingly, many lenders now use that payment history as proof of your affordability.  

This means that your track record of making monthly payments will now work in your favour. There are even some lenders offering low-deposit mortgages specifically for those with at least 12 months of full rental payment history.  

Of course, not every lender will offer this, which is why it’s important to speak with a mortgage broker about your options.  

Buying your first home with bad credit or an IVA 

This is another common question that our advisors are asked: Can you get a mortgage with a history of bad credit? The answer is you can, but your options might be limited, as it depends on your individual circumstances.  

Many potential homeowners assume that a bad credit history from when they were younger will always count against them. But it’s a lot more common than you may think, and our advisors have seen almost every financial circumstance you could think of, and there are usually strong options available to you to help you take those first steps on the property ladder.  

We always advise that you should think positively. Many lenders specialise in adverse credit mortgages, and we work with them all the time. Whether you’ve missed a credit card payment or two, or a CCJ or an IVA has impacted you, there’s always something we can do, or a different lender we can talk to.  

The best thing you can do is show that you’re working hard to clear any debts and talk to a mortgage broker who can match you to the right lender.  

Why specialist mortgage lenders matter for first-time buyers 

If you’re applying for your first mortgage, it’s tempting to head straight to your local bank or building society. After all, you have an account with them, you know them, and you trust them. And that’s great! 

But we’re always telling people that there are more options than just high street lenders. We work with lenders who specialise in niche areas and complex situations (perhaps you’re considering a shared ownership model, or part of your deposit has been gifted from a family member). 

If you’re applying yourself and you have anything unusual in your finances, you could inadvertently trigger a declined mortgage application, which could have been spotted and flagged up by a mortgage broker before it became an issue. 

Is now the right time to buy a home, or should you wait? 

So, what is the answer to this question? 

There’s no right or wrong answer; everyone’s circumstances are different. We recognise that, for most buyers, the decision comes down to when you feel personally ready.  

If you’re looking for the perfect time, there will always be a headline to scare you, or a global issue that could have hypothetical or very real consequences on the UK housing market. These are situations completely out of your control, and nothing you do can change or affect them.  

That’s why it’s so much more important to focus your decision-making on the issues that you can control. Because when you know what you can do yourself to improve your affordability, that dream of owning your own home becomes much closer to becoming a reality.  

Whether you are ready to start actively looking or you want to understand where you stand, speaking to an experienced mortgage broker can help you decide based on your circumstances rather than fear of the market. The right time to buy your own home is when your financial figures make sense, the commitment feels manageable rather than overwhelming, and your overriding emotions are excitement and hope.