Recent figures from Zoopla show that the typical summer slowdown in the UK housing market hasn’t materialised this year. Instead, we’re seeing an increase in buyer demand and agreed sales — and a major part of that is down to the government-backed changes to mortgage affordability rules.

These changes are giving homebuyers the ability to borrow more than they could just a few months ago, and that’s helped keep the market moving despite wider economic uncertainty. But what does this all mean if you’re a homeowner, first-time buyer, or landlord?

A Shift in the Market: What’s Actually Happening?

According to Zoopla, buyer numbers in July were 11% higher than the same month last year. That’s translated into an 8% rise in sales agreed, not something we usually see in summer.

At the same time, there’s been a noticeable increase in the number of homes coming onto the market, particularly across the South of England. That’s created more choice for buyers and helped ease price pressures.

The result? A much more balanced housing market. There’s healthy demand, but that demand isn’t pushing prices up at the pace we’ve seen in recent years.

What’s Behind the Rise in Activity

The key factor is the change to how lenders assess mortgage affordability. Buyers can now borrow up to 20% more than they could just three months ago, which is a big shift. For many people who were previously just outside the limits of what they needed to borrow, this change has opened the door.

Mortgage rates have also remained relatively stable over the past few months. That’s given buyers a bit more confidence to act while rates remain within reach.

What Does This Mean for Homeowners?

Thinking of moving?
If you’ve been considering upsizing or relocating, this could be a good window. With more homes on the market and more borrowing capacity available, buyers are actively looking, and they have more flexibility than earlier this year.

Coming to the end of your fixed-rate deal?
If your mortgage term is nearing its end, it’s worth checking what you could now afford under the updated rules. You may find you’re eligible to borrow more or access better products than expected, especially if your circumstances have improved since your last application.

Looking to remortgage?
Even if you’re staying put, there’s an opportunity to review your current deal. With affordability testing relaxed, some homeowners are finding they can unlock equity or restructure their mortgage in a more favourable way.

“We’re seeing a clear shift in momentum,” says Daniel Mumford, Managing Director of Grange Mortgages.
“These changes have made a real difference to buying power, and that’s helping many of our clients take the next step, whether they’re moving, remortgaging, or investing.”

What About the Rental Market?

Renters haven’t had it easy, and rents have continued to rise, with the average outside London now at £1,365 a month. However, the pace of growth is finally slowing.

There are more rental properties on the market compared to last year, which is giving tenants a bit more breathing room. Landlords, meanwhile, are facing longer marketing periods and, in many cases, having to reduce asking rents to secure tenants.

If you’re a landlord or considering buy-to-let, it’s still a complex picture. Returns are still possible, but understanding your local market is more important than ever.

In Summary

The UK property market is in a very different place to where it was 12 months ago. The changes to mortgage affordability rules have made a real impact, helping more buyers move forward and keeping the market active through the summer months.

If you’re thinking about moving, remortgaging, or just want to understand what’s possible, considering the new rules, now is a good time to have a conversation.

At Grange Mortgages, we’re here to help you make informed, confident decisions. Get in touch for a chat about your options. No pressure, just clear advice.