First-Time Buyers, Falling Rates, and a Market Reawakening: Richmond’s Property Outlook in Focus

And not just for current homeowners, but also for those house-hunters looking to move to our area, and not least for first-time buyers, too.

In my article last week I explored how Richmond has outperformed the wider London market with an impressive 6% annual price growth (compared to London’s 1.7%). Today I want to expand on that, to widen the lens, and examine in a little more detail what is fuelling the strength of this local market, and decipher why the outlook for the rest of 2025 might be brighter than many predicted.

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The return of the first-time buyer?

A few recent national headlines have turned their attention to the contribution of the so-called;"Bank of Mum and Dad"as famil y support continues to play a crucial role in helping young buyers take their first step onto the property ladder. In some cases, this support is the difference between owning and renting, even between staying in the capital and moving elsewhere altogether.

But while intergenerational wealth is undeniably a factor, it’s not the whole story. A combination of improving mortgage conditions, stabilising interest rates, and a potential loosening of lending criteria may provide further support to first-time buyers – and of course, by extension, to the entire property market.

What do I mean by that? Simply, no chain can begin without a first link to start it off, and first time buyers are often those who give us that.

When first-time buyers are locked out of the market, we definitely feel it. Remember 2008? The difference between now and then is that in 2008, cash buyers swept in to purchase property for investment, which kept the lower end of the market alive (although deeply cut); today, investors are fewer and further between, and not here in numbers to start those chains off.

It can mean sellers struggling to find proceedable buyers, chains stalling, and overall transaction volumes beginning to decline. Nevertheless, when the logjam breaks, when a first-time buyer steps in to purchase that one-bedroom flat or starter home from the first-time sellers looking to move up the ladder, it means the gears of the whole market begin to move again.

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Mortgage markets are starting to soften

As mentioned in my article earlier this month, the Bank of England base rate was cut from 4.5% to 4.25% on May 8, 2025, widely reported as being positive for the market, particularly due to mortgage rates also coming down…

Ironically, the type of mortgage product people are most transfixed by – the 2 year, 3 year and 5 year fixed rate mortgages – haven’t changed greatly since May 8.

News headlines can talk about many mortgages falling by 0.25% (or more accurately, knocking 0.25% off their headline rate), because tracker rate mortgages will have done this –those being mortgages which ‘track’ the Bank of England base rate (i.e. a tracker rate mortgage that was ‘Bank of England Base Rate plus 0.75%’ will have dropped from 5.5% to 5.25%, for example…).

Variable rate mortgages may also drop or may have come down already. These are more dynamic than fixed rate mortgages and tend to follow the pattern of what the base rate does, but it is at the discretion of the lender.

Nevertheless, many of these will have dropped by 0.25%, or be set to do so – or, if not by that exact amount, will be likely to drop by something similar.

This is useful therefore for homeowners running out of time on their existing fixed rate deal, who are set to fall onto their lender’s variable rate once their deal comes to an end. It is a problem that has been described as a mortgage timebomb, and so this is welcome news.

Nevertheless, we need to be measured about it, because the average variable rate at the moment is 7.74%, according to Uswitch.

What it all comes back to is those fixed rate deals that buyers and remortgaging homeowners have become so much keener on in the last two decades or so. Uswitch tells us that these are, on average, 4.79% for a 2 year fixed, and 5.04% on a 5 year fixed product.

But the landscape may be shifting. Whilst it is true what I said earlier – that not much has changed in fixed rate mortgages since May 8 th – financial markets are increasingly pricing in rate cuts, and lenders are responding in kind.

The reason not so much has changed since May 8 th on fixed rate mortgages is actually because banks and lenders had already priced the latest cut in and acted positively, in advance.

Several mainstream banks are already offering fixed mortgage deals below 4% – mainly when a buyer is armed with a good deposit and no doubt scores as very much credit-worthy.

This is significant because as borrowing becomes more affordable, buyer confidence increases – in fact, even when it is only news stories that hint about affordability improving, becoming more common, buyer sentiment improves.

Those who were sitting on the sidelines late last year, worried about repayments, affordability criteria, or negative news headlines, are now beginning to return, spurred on by improved mortgages and armed with fresh agreements in principle – and possibly also with a more realistic outlook about the market and their buying power.

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Richmond, Twickenham and Teddington: a safe bet for long- term growth

For anyone wondering whether it’s the right time to buy or sell a property in Richmond Borough, the long-term data tells a reassuring story.

Despite market cycles, economic shocks, and changing buyer behaviours, bricks and mortar here has continued to perform.

According to the Office for National Statistics and wider historic Land Registry data:

The average property price in Richmond upon Thames had risen by around 6% in the 12 months to February

Going back further, prices have risen by around 21% over the past 10 years.

Over 20 years, that figure climbs to almost 130%, far outstripping inflation.

‍Consider what we’ve been through in the last 20 years: conflicts and natural disasters significantly disrupting international trade; the banking collapse of 2007; the crash of 2008 and the subsequent recession; Brexit; a global pandemic; two Trump governments upsetting the normal world order; the growth of crypto marketplaces; and even the death of monarchs…

Is it amazing that the value of property has continued to climb above inflation – which itself, as we are frequently reminded, has skyrocketed well above target on numerous occasions.

It isn’t just luck – and least of all here in Richmond Borough, where it really does come down to some local fundamentals that remain unchanged: outstanding schools, strong transport links, access to green space, and a high quality of life.

The demand for homes in these areas is deeply embedded. As new buyers enter the market at a time where new-building, though promised, is distinctly lacking, demand will only intensify.

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A word to sellers: momentum may be building

If you’ve been holding back on selling due to economic jitters or market “noise”, now may be a good moment to revisit your plans. As first-time buyers return, they unlock a flow of activity up the chain, and that in turn leads to faster sales, greater competition, and stronger prices.

The Richmond market is already outperforming many parts of London. Our average property value is currently around £775,000, according to the ONS; for detached homes here, make that an average price closer to £1.7 million.

We have recently sold two properties at that £1.7 million price point, and both achieved their asking prices – with buyers actually being found through our social media campaigns within the first days of marketing.

That is how strong demand is (but also why it pays to think in more modern ways about where buyers are now lurking…).

A well-presented home, priced correctly, will attract motivated, proceedable buyers this summer.

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Looking ahead

It is rare to have alignment between sentiment, supply, and financing, but here in the Richmond Borough it feels like we may be approaching just such a balance.

If mortgage rates continue their gradual easing, which seems likely following the base rate cut on May 8th , given the expectation there will be at least a couple more this year according to economists, we will see a surge in activity across the board – from first-time buyers to downsizers, and everyone in between.

The fundamentals as I already mentioned, remain incredibly strong. The long-term picture is reassuring. And for those ready to move, the conditions are slowly but surely tilting in your favour. We’re here at Bartlett and Partners to help you navigate the local market here in Richmond upon Thames, Twickenham and Teddington – so whether you are early in the process and you have any questions, or are already primed and ready to go, I would love to hear from you.

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