The Intermediary – August 2026 - Flipbook - Page 99
L O C A L FO C U S
Reading
First-time buyer appetite
ADRIAN COLLINS
founder of Beechwood Mortgages
e’ve had plenty of new enquiries coming through, with just
over 62% of those being from first-time buyers. is is
slightly up from 55% in 2025, which is encouraging. With
more lenders now supporting first-time buyers with
stretched income multiples, raising sufficient deposit remains the main
challenge for most first-time buyers in Reading. Home mover enquiries
are also up, only slightly but still encouraging, nonetheless. We’re also
seeing more enquiries from those on Visas, which can be challenging to
place, particularly those who don’t have 10% deposit.
Although we’ve seen a 20% drop in new enquiries compared with
same period in 2025, we are up year-on-year in terms of new mortgages
submitted. So those enquiring are better quality and do seem keener to
crack on. We had plenty of what we call ‘slow burner’ enquiries in 2025,
so it does strike us that sellers and buyers have had enough of waiting
around for rates and house prices to move in their favour.
We have a healthy book of potential buyers sat with their Agreements
in Principle that are struggling to find properties. We work with several
local estate agents, and they are reporting a slight decline in new
instructions, which is expected for the time of the year.
is year, Nationwide has accounted for 17% of our overall mortgage
submissions, mainly thanks to their Helping Hand mortgage which
works well for FTBs. is is followed by Barclays with 12%, and Halifax at
11%, again due to their increased income multiples. Barclays is in second
place for the first time, which we can only put down to its more flexible
approach to foreign nationals. Interest rates also play their part and
Barclays seems to have shown more appetite this year.
W
Meanwhile, several major
regeneration schemes are changing
both the town centre and its
surrounding areas.
Much of that change is closely
connected to Reading’s new transport
infrastructure. Ballard says: “The
Elizabeth Line was a big win for
Reading, and made an already wellconnected town even more aractive
to commuters.
“Station Hill has transformed
the area around the station, and
with further regeneration planned
around the Minster Quarter and Broad
Street Mall, there is still plenty more
to come.”
Collins highlights the
redevelopment of the former Central
Swimming Pool site, and regeneration
around The Hexagon theatre.
He describes the laer schemes
as “exciting regeneration projects,”
pointing to a pipeline of development
extending beyond the immediate
station area.
Further out, Royal Elm Park
represents another substantial
addition to Reading’s housing
pipeline. Kolb explains that the
scheme will see “around 15 hectares of
brownfield land adjacent to Reading
FC football stadium developed into a
mixed-use site,” with plans for up to
618 new homes alongside a hotel and
commercial space.
Rental demand
Reading’s private rented sector (PRS)
accounts for 26.2% of housing stock,
slightly below the national average
of 27.1%. Despite an established
rental market, brokers report that
the economics of buy-to-let (BTL)
have become more challenging, with
taxation and regulatory requirements
weighing on investment demand.
Indeed, Collins has seen buy-to-let
enquiries decline, with some existing
landlord clients choosing to sell.
He explains: “We’ve seen a drop in
buy-to-let enquiries, with some
of our own clients selling their
properties simply due to increased
mortgage costs, coupled with the
additional costs to bring their
properties in line with the new
legislation.”
However, he is quick to note
that residential mortgages have
traditionally accounted for a much
larger share of his firm’s business.
For Ballard, the market has
become more selective rather than
disappearing altogether.
He says: “Buy-to-let is certainly
tougher than it used to be, but it’s far
from dead. Landlords are having to be
smarter about what they buy and at
what price.”
Reading continues to benefit from
strong tenant demand, but, as Ballard
puts it, “nowadays the maths needs to
work before anything else does.”
Kolb similarly describes appetite
for new buy-to-let borrowing as
“relatively subdued,” pointing to high
property values, increased mortgage
costs, the Stamp Duty surcharge and
the Renters’ Rights Act as barriers
to investment.
He argues that this sits uneasily
alongside continued demand for
rented housing, adding:
“The private rented sector is a
significant part of UK housing and
has seen increased demand in recent
years, and so it is disappointing to see
such a disjointed approach to it by the
Government.”
Future outlook
It is clear that Reading enters the
remainder of the year shaped by the
same affordability pressures that
have changed buyer behaviour over
recent years. However, reasons for
confidence remain.
The longer-term picture is
supported by continued regeneration,
alongside the area’s strong
employment base. The challenge for
buyers will remain finding the right
property at the right price, alongside
monthly payments that they are
comfortable with.
As Kolb puts it: “Appetite is
improving. I think there is quite a lot
of pent-up demand for both sellers
and buyers.
“As sellers and buyers get used to
the market, then activity levels start
to increase. I expect September to be
busy as the traditional end of year
push starts.”
August 2026 | The Intermediary
97
