Atom bank Comment: Private rent and house prices, UK: May 2026

20 May 2026

Chris Storey, Chief Commercial Officer, Atom bank

“These figures are a snapshot of a chaotic period for the housing market, with the conflict in Iran leading to fluctuating swap rates and unexpected increases in mortgage rates. While inflation has fallen for the first time this year, this is likely to be short-lived given the ongoing war and impact on energy prices. The fact that house prices have remained unchanged against this backdrop underlines the scale of the challenge for would-be purchasers.

“However, there is a danger that some buyers, particularly first-time buyers, are underestimating their options and unnecessarily delaying purchases. Recent research from Mortgage Advice Bureau found that 73% of first-time buyers are unaware of 95% LTV mortgages, at a time when rising rent and costs mean low deposit options are vital.

“As an industry we need to not only ensure would-be buyers with modest deposits have access to flexible mortgage finance, but do a better job of educating them about the availability of such mortgage deals with mainstream lenders.”