Flat house prices offer first-time buyers a small reprieve amid rising mortgage rates

Our take

While this article draws on UK data — pound figures, Lloyds, and Moneyfacts — the underlying dynamic maps closely onto what South African first-time buyers are experiencing right now. The South African Reserve Bank's rate hiking cycle has similarly cooled house price growth, with FNB and Lightstone data showing nominal price growth running well below inflation in most metros. That's cold comfort on monthly bond repayments, but it does mean deposit targets in suburbs like Roodepoort, Brackenfell, or Gqeberha's northern areas are not moving as aggressively as they were in 2021–2022. For SA first-time buyers, the practical takeaway is similar: use this window of price stability to build your deposit and get pre-qualified. Bond originators like ooba and BetterBond can shop multiple lenders simultaneously, which often yields a better rate than going directly to one bank. If a rate cut cycle begins — and the SARB has signalled caution but not permanence — those who have already secured pre-approval will be best placed to move quickly. Sellers in the entry-level market (R800k–R1.5m) should note that buyer affordability remains the binding constraint, so realistic pricing is non-negotiable right now.