Sussex property news: Bank Rate rises to 4% as Your First Home price caps are set for every Sussex council (14 November 2026)
The Bank of England put Bank Rate up for the first time in more than three years, and the government published the new-build price caps that will apply to Your First Home buyers in each Sussex district. Lloyds and RICS both reported weaker prices across the South East in October, and the new Sussex & Brighton Strategic Authority set out its first housing spend.
Bank of England raises Bank Rate to 4%, the first rise in more than three years
At its meeting ending on 4 November, the Monetary Policy Committee voted 8 to 1 to raise Bank Rate by 0.25 percentage points, from 3.75% to 4%. The one dissenting member wanted a bigger rise, to 4.25%. The Bank said UK CPI inflation rose to 3.5% in September and is now expected to reach around 5% by the middle of next year, driven by energy prices.
The minutes note that benchmark two-year mortgage rates had already risen by nearly 50 basis points since the start of September, and that new mortgage approvals for households had been falling. The next decision is due on 17 December.
Lenders priced the rise in early. Moneyfacts said its average new mortgage rate reached 5.89% at the start of November, a three-year high, with the average two-year fix at 5.97% and the average five-year fix at 6.00%. The average standard variable rate stands at 7.13%, and Moneyfacts estimates a borrower who drops onto it instead of a typical two-year fix would pay about £182 a month more.
Sources: Bank of England, 5 November 2026, Moneyfactscompare, 5 November 2026, Mortgage Introducer, 4 November 2026.
Your First Home price caps published: Mid Sussex £460,000, Worthing £300,000
The government has published the local authority price caps for Your First Home, the new-build equity loan scheme announced in the 28 October Budget. Caps are now set council by council rather than by region. For Sussex they are:
- Mid Sussex: £460,000
- Horsham: £450,000
- Adur: £420,000
- Brighton and Hove: £415,000
- Arun, Chichester and Lewes: £405,000
- Wealden: £400,000
- Rother: £390,000
- Hastings: £375,000
- Crawley: £330,000
- Eastbourne: £310,000
- Worthing: £300,000
Mortgage Solutions points out that under Help to Buy the South East had a single regional cap of £437,600, and that 49 of the region's 64 councils now have a lower cap than that. In Sussex only Mid Sussex and Horsham sit above the old figure. The scheme is for first-time buyers of new-build homes with household income of £110,000 or less outside London. Applications are not open yet; GOV.UK says pre-registration will open before the end of the year.
Sources: GOV.UK, 3 November 2026, Mortgage Solutions, 3 November 2026.
Lloyds index: South East prices down 2.4% in a year to £379,258
The Lloyds House Price Index (formerly the Halifax index) showed UK prices fell 0.6% in October to an average of £296,285. Prices were 1.2% lower than a year earlier, the biggest annual fall since October 2023.
Southern England was weakest. Greater London fell 3.1% year on year to £524,892, and the South East fell 2.4% to £379,258. Northern Ireland led the UK with annual growth of 4.4%. Lloyds said conditions are likely to stay subdued in the near term but that the bank does not expect a sustained period of falling prices.
Sources: Lloyds, 6 November 2026, Lloyds House Price Index October 2026 (PDF), 6 November 2026.
Surveyors' sales outlook weakest since July 2023, with the South East below average
The RICS UK Residential Market Survey for October found the house price balance fell to -36% from -34%, and RICS said the South East recorded a weaker price trend than the UK average. Agreed sales slipped to -24% from -18%, and twelve-month sales expectations fell to -17%, the most pessimistic since July 2023.
Fewer homes are coming to market too: new instructions dropped to -8% from +6%. For tenants the picture is the opposite. Landlord instructions were at -30% and expectations for rent rises over the next three months climbed to +41%, the strongest since early 2024.
Source: RICS, 12 November 2026.
Sussex & Brighton Strategic Authority sets out £7.6m for affordable homes
The new Sussex & Brighton Strategic Authority has proposed a £7.6 million Housing Investment Programme, its first investment decision. The money would go to projects that speed up house building, unlock stalled sites and remove barriers to development, and would be committed by 31 March 2027 if approved. The authority's board was due to consider the plan on 11 November.
Board members visited Silvertide Point in Shoreham on 4 November, where Hyde Housing has built 159 affordable homes on the former Adur Civic Centre site in Ham Road: 53 for social rent and 106 for shared ownership.
Source: Sussex Express, 4 November 2026.
What this means for Sussex buyers and movers
If your fixed deal ends in the next few months, compare new deals now rather than waiting, as lenders priced this rise in early and the Bank has not ruled out more. First-time buyers looking at new builds should check the Your First Home cap for their own district, which in Sussex ranges from £300,000 to £460,000, before shortlisting homes. Sellers in a market where surveyors report falling prices and slow sales should price realistically from the start.