Bielby's Blog - The Home Front

If it feels like we’re having the same conversation about housing over and over again, it’s because we are.

The headlines haven’t changed much: homes are too expensive, and first-time buyers can’t borrow enough to get a foot on the ladder. With average house prices still many times above average earnings in many areas, it’s no wonder buyers—and the wider market—are feeling stuck.

That’s why Chancellor Rachel Reeves has announced new measures aimed at helping lower-income first-time buyers secure larger mortgages. The hope is that easing lending criteria might unlock more sales and give the market a much-needed boost.

But is this really the solution?

A Familiar Pattern

If this all feels a little familiar, you’re not alone. Previous schemes have also aimed to “unlock” the market by allowing buyers to borrow more—most notably Help to Buy under the Cameron government. But critics argue that simply helping people take on larger mortgages doesn’t solve the fundamental problem: house prices are too high in the first place.

In fact, artificially boosting demand (by helping people borrow more) can reinforce the cycle of ever-rising prices, especially when the supply of affordable homes remains limited.

Housing and the Economy: A Bigger Picture

This isn’t just a problem for buyers. Britain’s sluggish housing market has a knock-on effect across the entire economy—whether you own a home or not.

We’re currently in what some economists are calling a “stalled” market, and that’s weighing down on economic growth. The Bank of England, trying to control inflation, is keeping interest rates relatively high, while the housing market waits for affordability—or confidence—to return.

Speaking recently to a senior Bank of England economist, Rupal Patel, The i Paper explored this balancing act. Economists are under pressure to bring inflation back down to the 2% target (it currently sits at 3.4%)—but not so fast that it stifles the economy altogether. Interest rate decisions affect everything: mortgage payments, disposable income, spending confidence, and ultimately the speed at which homes change hands.

The Catch-22 of House Prices

In theory, if the government can encourage more people to buy homes, that should stimulate the market. But today’s prices are already stretched to their limits. In many areas, homes are 8 to 10 times the average salary—levels which are simply unsustainable without huge wage growth.

Unless wages catch up (unlikely in the short term), there’s little room for prices to rise much further without locking out even more buyers.

So where does that leave us?

What Can Actually Help?

There’s no silver bullet. But long-term, meaningful change is only likely to come from one of two things:

• Building more truly affordable housing, or
• Targeted support for first-time buyers—not just in terms of borrowing, but in helping with deposits, or shared ownership schemes.

As Rupal Patel put it, housing is ultimately a private market—and there’s only so much the government or Bank of England can do to directly control prices or make homes more affordable. The challenge for this new government is not just to talk about growth, but to untangle the complex economic web that surrounds housing in the UK.

Our View at Barbers

We see the reality on the ground every day. First-time buyers want to move, families want to upsize, downsizers want flexibility—but they’re often held back by affordability, caution around mortgage rates, or lack of available homes.

Our job is to help navigate these challenges, offering honest advice, realistic valuations, and marketing strategies that make a difference—whatever the economic backdrop.

If you’re considering a move, whether you're buying your first home or rethinking your next one, we’re always here to offer a free, no-obligation market appraisal and a friendly, informed perspective.