Reading, Tilehurst & Calcot Movers Focus on Mortgage Rates as Competition Picks Up
As 2026 begins, home movers across Reading and Tilehurst are not chasing headlines on house prices. Instead, they are keeping a close eye on mortgage rates because even a small shift can significantly affect monthly affordability.
So, how is the local market starting the year? Across Central and South Reading, and in Tilehurst, it remains a market that can and will move but only when the monthly numbers make sense for buyers. Since October 2025, the narrative has been less about big price swings and more about confidence: confidence in where mortgage rates settle and the impact that has on monthly payments.
The biggest change heading into 2026 has been financial rather than local. On Thursday 18 December, the Bank of England reduced the base rate by 0.25%, bringing it down from 4.00% to 3.75%. This is important because it feeds directly into tracker mortgage rates and influences fixed-rate pricing too, as lenders respond to market expectations and each other.
The Bank has suggested that further gradual reductions are possible, depending on how wage growth and services inflation play out. In short, nothing is guaranteed and that is exactly why Reading movers are watching mortgage rates so closely.
Lenders have already started to respond. In 2025, the average two-year fixed rate fell from 5.46% to 4.93%, while the average five-year rate eased to 4.98%. At the start of this year, HSBC moved first, cutting rates, widely seen as a signal that mortgage pricing will be one of the key battlegrounds for lenders in early 2026.
This shift has prompted a growing number of buyers to ask the same question: are we heading towards more sub-4% deals? Some analysts believe that rates below 3.5% could return later in the year, but that depends on how the broader market evolves. For now, it is a possibility, not a promise.
House prices, both within Reading and nationally, have remained relatively steady. According to the UK House Price Index, the average UK home stood at £270,000 in October just 0.1% lower than the previous month and up 1.7% year-on-year. Halifax and Nationwide reported similar trends through November and December 2025, showing modest growth and typical seasonal dips.
On Rightmove, average asking prices dropped 1.8% in December, as expected during the quieter winter months, but agreed sales remained up 3% compared to 2024, a sign that serious movers are still pushing ahead.
Mortgage approval figures also suggest a steady, functioning market. The Bank of England recorded 65,000 purchase approvals in October and 64,500 in November slightly lower, but within normal ranges. More notably, remortgaging activity has increased. In November, approvals rose to 36,600, reflecting what many are now seeing, homeowners are actively reviewing options as lenders compete.
Completion volumes remain solid too. HMRC data shows 98,450 residential transactions in October, up 2% on the previous month and that was before the December rate cut had filtered through.
Closer to home, Reading’s average property price was £349,000 in October, according to the most recent official data, down 1.4% year-on-year. That mild annual dip is meaningful: when values are stable or slightly lower, mortgage rates become the key factor in affordability. Local movers paid an average of £429,000 last October, while the average mortgage buyer paid £353,000 - again, slightly below 2024 levels.
So, what are the key questions Reading based buyers and sellers are asking right now?
- Will mortgage rates fall further?
- The honest answer is that the Bank of England has said changes will be gradual and data-dependent. Inflation, wage growth and market sentiment will shape the outlook more than any one lender’s headline.
- Is now a good time to remortgage or fix?
- If you are on a tracker, the recent cut will already be helping. If you are on a higher SVR, now is a sensible time to explore options - fixed rates have come down significantly since early 2025.
- Is affordability improving?
- In many cases, yes. With fixed rates easing and property prices in Reading slightly softer than last year, monthly payments are beginning to look more manageable again.
Looking ahead into February, the market across Reading and Tilehurst feels less like a question of if people will move, and more about when the numbers make sense. Price growth is subdued, mortgage rates are being sharpened, and competition is starting to return. Over the coming weeks, all eyes will be on whether that turns into meaningful movement and the kind of clarity that gives movers the confidence to take the next step.
Moving Smart: Timing, Strategy and Beating the Portals
Market activity at the start of 2026 appears to be steady with buyers re-entering the market after the holidays and sellers weighing up their next move. Success in this kind of environment doesn’t come from waiting for the ‘perfect moment’ but more from smart timing, realistic expectations and a marketing plan that does more than just tick boxes.
That’s where avocado property’s #BeatThePortals™ campaign comes in. Rather than relying solely on Rightmove or Zoopla to do the heavy lifting, we create a bespoke, pre-portal marketing strategy that builds real momentum before your home even hits the public sites. It’s designed to connect the dots between sellers and serious buyers faster, helping you get ahead of the rush, control your timeline better and move with confidence in a market that rewards preparation.
Interested in moving in Reading. I’m always happy to talk you through your options.
