# Home buyers being more cautious amid mortgage rate hikes, property experts say

By Sarah Coles — 2026-09-30

Sarah Coles, head of personal finance at AJ Bell, insists there was still some life in the property market despite the amount of homes sold in August dipping.

She said: “The property market had caught a cold by August, but hadn’t yet retreated to bed. Sales were down two per cent in a year and one per cent in a month. They were below the average for August over the past decade, but there was still some life in the market. How long it lasts remains to be seen.

“These figures reflect sales agreed roughly three months earlier, around May, when mortgage rates were elevated after the outbreak of the Iran conflict. They weren’t as high as they are now, but according to Moneyfacts the average two-year fix was 5.81 per cent and the average five-year fix was 5.7 per cent. This was a significant hike on just a couple of months earlier, so it was enough to put some buyers off

“During the summer we saw mortgage rates ease a little, and the RICS Residential Market report showed that buyer negativity had been easing. It gives us some hope for the next set of figures.

“However, that’s far from the end of the story, because as we entered the autumn, we’ve seen oil prices ramp up, inflation worries rise and mortgage rates have climbed. We usually get an autumn bounce in the property market, and Rightmove data has shown asking prices have risen more than usual, but there’s every chance that buyers are going to remain wary, and property sales are likely to suffer.

“If you’re planning to buy in a market like this, it’s important not to overpay or overstretch yourself, because there’s a real uncertainty over the strength of property sales and prices in the coming months. Part of the solution will lie in negotiating a good deal.

“However, for first-time buyers, you can also protect yourself by building a bigger deposit – whether by asking for help from family or by making the most of a Lifetime ISA – or both.”

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