A rare mix of falling property prices, anticipated interest rate reductions and more flexible mortgage criteria could make 2026 one of the most favourable years for buyers since the pandemic, according to a leading mortgage specialist.

Recent figures show that UK house prices have continued to decline year-on-year, with December recording a further drop. This follows an extended period of high inflation and rising borrowing costs, creating new opportunities for buyers who have been waiting to enter the market or move to a larger home.

At the same time, economists are predicting notable interest rate cuts throughout 2026. Capital Economics forecasts the Bank of England base rate will fall from 3.75% to 3% during the year. This view is shared by global financial institutions Morgan Stanley and HSBC, both of which expect the rate to reach 3% by the end of 2026.

John Everest, Director at independent mortgage advisors Everest Mortgage Services said: “Falling house prices combined with lower interest rates is a powerful mix to create a buyer’s market. If forecasts are correct, many people could be borrowing at cheaper rates while purchasing homes at more realistic prices than we’ve seen in recent years.”

In addition to rate expectations, mortgage affordability has improved significantly. Following calls from the government to support first-time buyers and homeowners, lenders have increased income multiples over the second half of 2025. Between August and December 2025, typical lending rose from around 4.5–5 times income to much higher levels.

Today, many lenders are offering 5–5.5 times income to standard buyers and up to 6.5 times income for first-time buyers quite widely, with one lender now offering up to 7 times income for first-time buyers.

“The offers lenders are now willing to give has created a huge shift in affordability,” John Everest added. “While we don’t expect interest rates to fall to the levels seen during the pandemic, buyers who may have struggled to borrow enough even a year ago may now find the doors wide open.”

John claims the mortgage market itself has cooled compared to 12–18 months ago, increasing competition among lenders. With fewer buyers and strong pressure to lend, banks are engaging in aggressive pricing and product innovation to win business.

This competition has already led to the return of 100% loan-to-value mortgages in 2025, alongside products requiring deposits of less than 5%, which John says is a significant development for renters and first-time buyers trying to get onto the property ladder who don’t have high lump sums saved for typical 5-10% deposits.

These changes are not limited to salaried workers. Self-employed individuals and company directors are also benefiting from improved lending criteria, with more flexible income assessments and higher borrowing multiples now available.

John concludes that while it is impossible to time the market perfectly, 2026 is shaping up to be a rare year where pricing, borrowing costs and lender flexibility all align.

“For anyone considering buying their first home, upsizing, or refinancing, 2026 could represent one of the best opportunities we’ve seen in years. However, getting advice from the right people early will be key to making the most of it.”

For more information about Everest Mortgage Services, visit www.everest-mortgages.co.uk.

• JPP Law, a commercial law firm specialising in startup and investor advisory work, has analysed Labour’s performance in its first year in office.
• The Government has increased support through state-backed investment routes and reintroduced long-term industrial planning for growth sectors.
• Important tax schemes for early-stage companies, including SEIS, EIS and R&D relief, remain unchanged, offering stability to founders and backers.

JPP Law, which works with startups, scale-ups and investors across the UK, believes Labour’s first year in government has brought a more stable and predictable environment for emerging businesses.

Since taking power in July 2024, Labour has repeatedly spoken about its plan to “reset” the UK’s growth framework. Yet, following November’s Budget announcement, many companies are still seeking clarity on what has actually shifted.

JPP Law’s review indicates the Government has pursued a practical, subtly interventionist approach, strengthening existing structures rather than attempting wholesale reform.

A renewed focus on long-term planning

One of the most notable developments has been the launch of Invest 2035: The UK’s Modern Industrial Strategy, first published for consultation in late 2024. This marks the return of a formal industrial strategy after several years of frequent policy changes that included growth plans, missions, and various short-term frameworks.

Invest 2035 identifies priority sectors for long-term support, including digital technology, life sciences, clean energy, the creative industries and advanced manufacturing. Government sector plans released in 2025 outline ambitions and investment priorities for these industries up to 2035, signalling a clearer direction for multi-year planning.

“Startups benefit from stability,” said Mark Glenister, a commercial law solicitor and Founder of startup specialist law firm JPP Law. “A published industrial strategy gives founders more confidence that the policy environment will not shift dramatically from year to year.”

While the strategy does not yet set out fixed long-term R&D budgets for individual programmes, it does commit to a decade-long framework for industrial development with multi-year sector planning.

State-backed investment ramps up

The Government has made the expansion of public investment channels a central part of its growth agenda. The British Business Bank (BBB) now has substantially greater firepower, following an increase in its investment capacity. This allows the BBB to broaden its regional programmes and scale-up support, potentially narrowing the long-standing funding gap between London and the rest of the UK.

Alongside the BBB, the newly established National Wealth Fund brings together several public finance functions to co-invest in high-growth industries. While its early focus is on sectors such as clean energy, industrial manufacturing and green technology, JPP Law says its long-term impact could be significant for deep-tech startups.

The UK has long faced challenges in scaling deep-tech and infrastructure-heavy startups. Consolidating public investment into clearer channels may help address some of those historic barriers.

The Government has also signalled continued interest in unlocking long-term domestic capital, including pension-fund investment, for UK high-growth companies. These reforms remain in development, but the direction of travel suggests a stronger focus on mobilising institutional investment for innovation.

A more coordinated national approach to AI

One of the clearest areas of political emphasis has been artificial intelligence. The AI Opportunities Action Plan, announced earlier this year, outlines a more coordinated strategy than the UK has seen previously. It includes the creation of “AI Growth Zones,” which provide faster planning processes for data centres, predictable energy capacity and opportunities to test emerging technologies in controlled environments.

Public computer capacity is also being expanded on a large scale, aiming to address a major bottleneck faced by AI startups – the high cost and limited availability of computational resources. A new National Data Library, designed to make certain public datasets safely accessible for training and research, fits into this broader push.

“It appears the Government is trying to fix the foundational issues that actually constrain AI growth,” said Mark. “This is a welcome shift away from hype and towards infrastructure.”

Regulatory reform: small steps that matter

Startups frequently cite regulatory uncertainty as a major barrier to innovation, and Labour has indicated that it intends to address this through a more coordinated approach.

A proposed Regulatory Innovation Office is intended to oversee modernisation efforts across government departments, support innovation-friendly regulation, and help streamline approval processes. While much of this work is still at an early stage, the Government has signalled that it wants to expand the use of regulatory sandboxes, which were originally developed in fintech, into more sectors of the economy.

Planning rules affecting the development of laboratories, specialist R&D facilities and data-heavy infrastructure have also been reviewed, with the Government indicating that innovation clusters will be prioritised for faster planning pathways.

While none of these changes are dramatic in isolation, JPP Law says their cumulative effect could be significant. “Startups need regulation that understands how innovation works,” the firm notes. “The measures introduced so far suggest the Government is listening to that message.”

A deliberate choice to preserve tax incentives

Perhaps the most reassuring development for founders and investors has been the Government’s decision to leave core tax incentives unchanged. R&D tax relief, SEIS, EIS, the Patent Box and full expensing, which are all crucial tools for early-stage innovation, remain intact. ARIA, the UK’s high-risk research funding agency, has also kept its long-term funding.

JPP Law’s overall assessment

In its first year, the Government has prioritised clarity, continuity and long-term strategy. While the most immediate benefits are likely to be felt in AI, life sciences, clean energy and advanced manufacturing, the overall environment for startups appears more stable than it has been in recent years.

“The Government is building on what already exists, rather than disrupting it,” Mark Glenister added. “The next phase will depend on delivery, particularly around investment programmes and regulatory reform, but the direction of travel is constructive.”

Bnqz Inc. (Quidkey), the AI-native clearing platform for global account-to-account transactions, today confirmed it has successfully completed its SOC 2® Type II audit.

The clean audit opinion verifies that Quidkey meets the strict AICPA standards for security, availability and confidentiality. This achievement reinforces the company’s robust security posture as it scales its operations worldwide in response to rising merchant demand.

Account-to-account payments are accelerating globally as businesses seek faster, more cost-effective alternatives to card networks and complex cross-border payment systems. Industry forecasts predict global A2A volumes will exceed one trillion dollars in the near future, driven by regulatory reform and the push towards real-time settlement.

Unlike card-based payments, direct bank transfers eliminate intermediaries that typically carry fraud and chargeback liability. This places far greater security responsibility on the clearing infrastructure that underpins these transactions.

As a result, SOC 2 certification has become a baseline expectation for enterprises, financial institutions and payment providers evaluating real-time money movement platforms.

From inception, Quidkey was engineered to meet this standard. The platform is currently live across Europe, the UK, the United States and Australia through a single integration, supporting merchants across retail, travel, logistics and digital commerce sectors.

Quidkey offers bank-branded A2A checkout for Shopify merchants alongside direct API and iFrame deployment options. Completing the SOC 2 Type II audit ahead of major enterprise and FI partnerships further positions the company as a secure provider of global settlement infrastructure, regulatory compliance and programmable treasury automation.

SOC 2 Type II goes beyond control design, assessing how effectively those controls operate over time. The clean audit result confirms Quidkey’s security measures function consistently in real-world environments, protecting the full transaction journey including authentication, clearing, settlement, reconciliation and data management.

“Clearing bank-to-bank payments across continents requires a security posture equal to the institutions we integrate with,” said Rabea Bader, CTO of Quidkey. “We architected Quidkey for SOC 2 compliance from our first line of code. This certification validates that our controls operate to the standard our partners expect every single day.”

“This milestone aligns our security framework with the enterprises, processors, and financial institutions integrating our technology,” said Rob Zeko, CEO of Quidkey. “SOC 2 Type II removes a critical barrier in partnership evaluations and allows us to accelerate the global expansion of our clearing infrastructure.”

The audit evaluated multiple operational and technical domains, confirming that Quidkey’s systems are properly designed and consistently enforced:

• Secure data storage and encrypted transmission
• Access controls and authentication safeguards
• Continuous system monitoring and incident response
• Vendor and third-party risk management
• Business continuity and disaster recovery readiness

Quidkey’s clearing layer enables merchants to move value directly between bank accounts with a card-like experience but lower fees, faster settlement, and stronger security. The platform operates alongside existing PSPs and automates post-payment workflows such as instant refunds, tax isolation, multi-party splits, FX conversion, and reconciliation.

With SOC 2 Type II complete, Quidkey strengthens its position as the trusted clearing layer for enterprises and developers building the next generation of global account-to-account payments. The company is now finalizing readiness processes for additional payment providers and banking partners as demand continues to expand across markets.

Companies interested in reviewing the SOC 2 Type II report may request access at [email protected].

About Quidkey

Quidkey is a payment gateway building a global clearing house for Account-to-Account (A2A) payments. We provide a “Pay by Bank” experience that is as simple as using a card, but with lower fees for the merchant and optimized settlement times.

Quidkey makes paying by bank faster with an AI-native bank prediction engine. By automatically identifying a customer’s bank, it stops them from having to scroll through long lists at checkout, which helps increase conversion. Through one integration—available via API or the Shopify App Store—merchants can accept secure payments across the UK, EU, US, and Australia.