The 5 things first-time buyers should do NOW to get on the property ladder as house prices fall for first time in 3 yrs

HOUSE prices have fallen annually for the first time in three years, new data reveals today.

The cost of homes is now 0.4% below where it was in August 2025, according to Lloyds Bank.

The average UK house now costs £298,468 – the lowest prices seen since December.

While the news will be a hard pill to swallow for anyone trying to sell their home, it presents a great opportunity for first-time buyers to get on the property ladder.

“Horribly high prices have made it incredibly difficult to get onto the property ladder, and if they come down off recent highs, it could bring properties within reach – especially if sellers are prepared to negotiate,” says Sarah Coles, head of personal finance at AJ Bell.

Mortgage rates have climbed this year following the conflict in the Middle East, and are expected to jump further in the coming days and weeks.

Use your negotiating power

Negotiating is your secret weapon as a first-time buyer – so don’t be afraid to use it.

Sarah says: “You are the simplest kind of buyers for people to deal with, because you’re not bringing a chain with you, so use this to your advantage.

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“If your seller won’t budge on price, ask if they will include fixtures and fittings.

“The curtains may not be to your taste, and the dishwasher may be a bit older, but it’ll save you forking out for everything once you move in.”

Gather evidence and use it to your advantage, adds Craig Fish, director of London-based Lodestone Mortgages.

“Don’t just fall in love with a property, research the street, not just the postcode: comparable sales, recent renovations nearby, EPC rating, broadband and crime data all affect what a fair price is,” he says.

And if a home has been sitting on the market for weeks or longer, use that to push the price down – don’t be afraid to ask the agent what’s already fallen through before naming your price.

Look at your mortgage options

It may be a buyer’s market, but mortgage rates remain high and are set to soar further in the coming weeks.

The Bank of England will make its next interest rates announcement on September 17, which will impact mortgage rates.

But don’t wait around until then to lock in a deal, says Richard Davidson, mortgage advisor at onlinemortgageadvisor.co.uk.

“Most lenders let you swap to a cheaper deal right up to the day you complete, so you’re covered if rates go up and you still get the drop if they fall,” he says.

He adds that first-time buyers should get their mortgage agreed in principle before they start viewings.

“In a slower market a seller will often take a lower offer from a buyer who is ready to go over a higher one who isn’t,” he says.

Craig adds that buyers should make sure to speak to brokers with access to the whole market, rather than a restricted panel, as the difference in deals could add up to thousands of pounds over the long term.

Sarah Coles suggests considering a 30-year mortgage – which 62% of first-time buyers have – as this can be a useful way to make monthly repayments more affordable.

“Depending on how old you are when you take this mortgage out, it’s also worth thinking about the impact on your finances more broadly, especially if you will be making repayments after the date you want to retire.

“If that’s the case, it’s worth revisiting your position periodically to see whether you can make changes to pay your mortgage more quickly after a pay rise or job change.”

Don’t wait to be a coupled up

In today’s economy, it can feel almost impossible to get on the housing ladder if you’re single.

But Sarah says you don’t need to be coupled up and ready to buy together – you can buy with friends and family.

“However, if you take this approach, you need to flesh out exactly what you’ll do in every eventuality, so that if one of you wants to move on it doesn’t leave the other one high and dry,” she says.

Ask for some help from loved ones

With mortgage costs high, the size of your deposit will make all the difference if you’re a first-time buyer.

Sarah says it’s worth considering any help you can get – even if it means asking family for help.

“The Bank of Mum and Dad may be prepared to help – or the Bank of Gran and Grandad.

“According to the English Housing Survey, 31% of first-time buyers get help from friends and family and 9% use an inheritance – so two in five have family money to help them onto the property ladder.”

She adds that older family members who are worried about a potential inheritance tax bill could “kill two birds with one stone” by gifting their inheritance as a house deposit.

Supercharge your deposit by topping up your Lifetime ISA

If you have a Lifetime ISA, now might be a good time to top it up.

This is a government-backed savings account designed to help those aged 18-39 save for their first home.

However, you can only use it for homes that are £450,000 or less – otherwise you’ll be fined to withdraw your money from the account.

Sarah says: “There’s the chance to top it up in the current tax year by up to £4,000, and the government will add an extra 25% – up to £1,000.”

“If you’re not buying until after 5 April, you could make the most of next year’s allowance too.