Lenders step in with new solutions - but is it enough?
London may be the epicentre of the UK’s housing affordability crisis, but brokers across the country are warning that the pressures are far from confined to the capital. From Sheffield to Norwich and Glasgow, local markets are contending with their own affordability constraints, shaped by regional economics and lending responses.
Sheffield: Rising rents tighten the squeeze
For buyers in Sheffield, affordability concerns are intensifying even against a backdrop of lower house prices than the national average. “The average house price in Sheffield is currently around £224,000, which is significantly lower than the national average of £294,000,” said Katherine Stagg of Stagg Mortgages. “That said, affordability is still a growing concern, especially for first-time buyers, single-income households, and younger professionals navigating tighter lending criteria and rising rents.”
Rents in the city have surged, with average monthly costs now at £873 - up more than 6 per cent year-on-year - making it increasingly difficult for would-be buyers to save for deposits. Stagg observed that lenders are responding with “more flexible affordability assessments, increased appetite for longer mortgage terms (up to 35–40 years), and support for shared ownership and Help to Buy alternatives”. She also pointed to stronger interest in green mortgages and regeneration-driven new-build schemes in areas such as Heeley and Hillsborough.
East Anglia: Lenders stepping in
In Norwich, the view is that while affordability issues exist, the situation remains less stark than in London. “Things are not so bleak in other areas of the country, including East Anglia, where the majority of my clients are looking to purchase,” said Daniel Crabb of PSG Financial Consultants.
He highlighted a series of lender initiatives aimed at easing access to the market: “You have Skipton and Accord, amongst others, offering no or low deposit options, increased affordability for first-time buyers by the likes of Halifax and Nationwide, subject to criteria, as well as new challenger banks entering the market to assist buyers who previously may have been unable to get on the property ladder.”
Scotland: Hotspots driving competition
Scotland, meanwhile, continues to offer relative value compared with markets south of the border. But in certain locations, competition is intensifying. “Thankfully, property here is still more affordable compared to south of the border, and buyers up here tend to be a bit more conservative in terms of how much they want to borrow,” said Alan McKenzie of Your Next Step.
The exceptions are Edinburgh and Glasgow, where properties frequently go to closing dates. “That pushes buyers to stretch their budgets,” McKenzie said. “In those situations, it’s usually people with help from parents or grandparents, or overseas buyers with deeper pockets, who manage to secure the homes. That does make it harder for first-time buyers and those without extra financial support to compete.”
A shifting mortgage landscape
While London’s affordability crisis commands the headlines, the lived reality for brokers is that affordability pressures are increasingly widespread, albeit unevenly distributed. Whether through surging rents in northern cities, constrained lending in the regions, or intense competition in Scottish hotspots, brokers say the mortgage market is being reshaped by creative lender responses, regional disparities, and persistent challenges for those without family support.
