If you’ve been following the property market lately, you’d be forgiven for feeling unsure about what’s actually going on. One week, headlines warn of falling demand and a potential crash. The next, prices are reported to be holding firm or even rising in certain areas. Add in higher mortgage rates, and it’s no surprise many buyers are hesitating.

But as is often the case with property, the reality is far more nuanced than the headlines suggest. So what’s really happening in the market right now, particularly across North London? And more importantly, what does it mean if you’re thinking about buying?

(Updated: April 2026)

The mortgage conversation (and why it’s driving sentiment)

Let’s start with the most talked-about factor – mortgage rates. Over the past couple of years, borrowing costs have increased compared to the historic lows many buyers had become used to (particularly during COVID). The average two‑year fixed rate mortgage has risen to 5.42% in April 2026, from 4.25% before the start of the war in Iran, adding hundreds of pounds to a typical monthly mortgage payment in London.

Global uncertainty, including ongoing conflict in the Middle East, has contributed to upward pressure as markets react cautiously to instability. Naturally, this has had an impact on affordability and confidence, with some buyers adjusting budgets while others pause altogether to reassess their position.

However, it’s important to keep this in perspective. While rates are higher than recent years, they are not historically extreme. And there is a silver lining: mortgage product availability is currently at its highest level since October 2007, with over 7,150 options on the market. What has shifted more noticeably is buyer sentiment.

When uncertainty increases, decision-making slows. And when media coverage amplifies that uncertainty, it can create the impression that the market is more unstable than it actually is.

Why headlines don’t always reflect reality

Property headlines are designed to capture attention, which often means focusing on worst-case scenarios. Terms like ‘market slowdown’ or ‘price correction’ can quickly spiral into talk of a crash, even when the underlying data tells a more balanced story.

In reality, the property market doesn’t move in a single direction. It varies by location, price bracket, and property type. Across North London, we’re not seeing a uniform trend. Instead, we’re seeing a market that is gradually rebalancing after a period of unusually high demand.

That shift can feel like a downturn if you’re comparing it to the pace of recent years. In practice, it’s simply a return to more sustainable conditions.

A shift away from a seller-dominated market

For a period, sellers held a clear advantage. Low interest rates and strong demand meant properties often sold quickly, sometimes with multiple offers and very little negotiation. That intensity is beginning to ease.

As borrowing becomes more expensive, buyers are naturally more considered. They take longer to make decisions, ask more questions, and approach negotiations with greater caution. This doesn’t mean demand has disappeared, but it does mean it has become more measured.

From a buyer’s perspective, this can create opportunity. There is often more room to negotiate, more time to explore options, and less pressure to commit immediately. For sellers, it simply requires a more strategic approach, where pricing and presentation play an even greater role.

What’s happening in North London specifically?

Looking locally, the market remains relatively resilient, though with notable variations between neighbourhoods. The average house price across North London currently stands at £575,595, representing a modest 0.51% decline year-on-year – a gentle softening rather than a significant drop.

Areas such as Islington continue to attract consistent demand, particularly in the £750,000-£1.5 million bracket, where equity-rich and international buyers view the area as a long-term hold location.

Nearby Crouch End appeals to families and professionals seeking a village-like atmosphere with Victorian and Edwardian style housing, while Finsbury Park offers fantastic transport links and relative affordability that continues to draw first-time buyers and young professionals. Across North London, the pattern is consistent – well-presented, accurately priced properties are generating solid interest, while those positioned too optimistically may sit on the market longer and require adjustments.

The average time to secure a buyer in London is currently 74 days as of March 2026, slightly above the national average. When it comes to selling, this is where local insight on valuation and presentation becomes essential, as London-wide figures rarely reflect what is happening street by street.

The rental market context

For buyers weighing up their options, the rental market provides useful context. London rents have risen 1.7% year-on-year to an average of £2,273 per month – slower growth than previously, but still significantly above the national average.

For those with the deposit and affordability to buy, this can strengthen the case for ownership, particularly when monthly mortgage payments compare favourably to rental costs in certain areas. It’s not a straightforward calculation, but it’s one worth making with proper advice.

The role of a mortgage advisor (and why it matters more now)

With borrowing costs playing such a central role, speaking to a mortgage advisor is more important than ever. A good broker doesn’t just find a rate, they help you understand your true affordability and guide you through the different options available.

In the current market, that clarity can be the difference between feeling uncertain and feeling in control. Many buyers are choosing fixed-rate mortgages to create stability in their monthly payments, while others are adjusting deposit levels or loan terms to strike the right balance.

Without expert guidance, it’s easy to feel overwhelmed. With it, the process becomes far more straightforward and structured.

Practical steps buyers can take right now

If you’re considering buying, the key is to focus on what you can control rather than reacting to external noise. Start by understanding your budget properly, based on current mortgage rates rather than outdated assumptions.

Speaking to an advisor early is a practical first step, even before viewing properties. It provides a clear framework and allows you to move confidently when the right opportunity arises. At the same time, it’s important to remain open-minded. The current market may offer opportunities that wouldn’t have existed in more competitive conditions – with the number of homes for sale at an 11-year high, there’s simply more to choose from.

Above all, avoid making decisions based purely on headlines. The market will always fluctuate, but your individual circumstances are far more relevant to the outcome.

It’s not just a transaction

It’s easy to view buying a home purely as a financial decision, particularly when market conditions dominate the conversation. In reality, it’s also a lifestyle decision.

Where you live shapes your day-to-day life, from your commute to your sense of space and comfort. These factors don’t always align neatly with market timing, and waiting for a ‘perfect’ moment can often lead to missed opportunities.

The right time to buy is usually when the decision works for you personally as well as financially. If the property fits your needs and the numbers are manageable, that often matters more than trying to predict short-term market movements.

A final thought

The current property market isn’t as dramatic as headlines might suggest. It’s simply evolving into something more balanced, where both buyers and sellers need to approach decisions with greater care.

For buyers, that means taking a measured view, seeking the right advice, and focusing on what genuinely works for your situation. Because while the market will continue to change, your decision to buy a home is ultimately about something far more personal, and that’s what should guide it.

Contact us:

mark@daviesdavies.co.uk – Sales Director (contact for sales, lettings and new homes)

katrina@daviesdavies.co.uk – Director of Property & Block Management (contact for property and block management)

Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article & images by Barefaced Studios

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