Housing Market in UK 2026
The UK housing market has entered 2026 in a state of subdued stability rather than boom or bust — a holding pattern shaped by four Bank of England base rate cuts in 2025, persistent affordability constraints, and a sharp north-south divergence in price performance that is widening by the month. As of the most authoritative source available — the HM Land Registry UK House Price Index for March 2026, published 20 May 2026 — the average UK house price stands at £268,132, essentially flat on a year ago (0.0% annual change) and down 0.4% month-on-month from February. The two leading mortgage-based indices tell a slightly different story: Halifax reported £299,313 in April 2026 (down 0.1% monthly, up 0.4% annually) and Nationwide reported £278,880 in April 2026, reflecting the methodological differences between lender-based and transaction-based measures. All three converge on a clear conclusion: UK house price growth in 2026 is minimal, positive in some regions, and negative in London and the south-east.
The bigger story of the UK housing market in 2026 is not price growth at all — it is the tension between a market that is functionally active and one that remains deeply unequal. Residential transactions in 2025 totalled 1,212,240 — 10% higher than 2024 and broadly in line with post-Global Financial Crisis norms — driven partly by a stamp duty deadline rush in March 2025. First-time buyer numbers reached their highest level since the Global Financial Crisis, aided by easing mortgage rates. Yet the private rental sector continues to extract extraordinary sums from renters — average monthly private rent in the UK reached £1,377 in March 2026, up 3.4% year-on-year — and the north-south divide in both prices and affordability has rarely been more pronounced. The Bank of England base rate sits at 3.75% as of 30 April 2026, held there after four cuts from 4.75% during 2025, with markets anticipating at most one or two further cuts in 2026 amid rising inflation from Middle East energy disruption.
Interesting Facts: UK Housing Market 2026
UK HOUSING MARKET — KEY NUMBERS AT A GLANCE (MAY 2026 LATEST DATA)
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Avg UK house price — Land Registry (Mar 2026) £268,132 ██████████████
Avg UK house price — Halifax (Apr 2026) £299,313 ████████████████
Avg UK house price — Nationwide (Apr 2026) £278,880 ███████████████
Avg UK house price — Zoopla (Apr 2026) £271,500 ██████████████
Bank of England base rate (Apr 30, 2026) 3.75% ████
Avg 2-yr fixed mortgage rate (mid-May 2026) 5.75% ██████
Avg 5-yr fixed mortgage rate (mid-May 2026) 5.67% ██████
Avg monthly private rent — UK (Mar 2026) £1,377 ████████
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| Fact | Data Point |
|---|---|
| Average UK house price — Land Registry (March 2026) | £268,132 (0.0% annual; −0.4% monthly) |
| Average UK house price — Halifax (April 2026) | £299,313 (+0.4% annual; −0.1% monthly) |
| Average UK house price — Nationwide (April 2026) | £278,880 |
| Average UK house price — Zoopla (April 2026) | £271,500 (+1.3% annual, +£3,500) |
| Average asking price — Rightmove (May 2026) | £378,304 (+1.2% monthly) |
| Average house price — England (Feb 2026, Land Registry) | £290,000 (+0.8% annual) |
| Average house price — London (Mar 2026, Land Registry) | £542,000 (−2.1% annual) |
| Average house price — Scotland (Jan 2026) | £188,000 (+1.3% annual) |
| Average house price — Wales (Feb 2026) | £210,000 (+2.5% annual) |
| Average house price — Northern Ireland (Q4 2025) | £196,000 (+7.5% annual) — fastest growth in UK |
| Bank of England base rate (30 April 2026) | 3.75% — held; down from 4.75% in Jan 2025 |
| Average 2-year fixed mortgage rate (mid-May 2026) | ~5.75% (up sharply from 4.83% in March 2026) |
| Average 5-year fixed mortgage rate (mid-May 2026) | ~5.67% (up from 4.95% in March 2026) |
| Average standard variable rate (SVR, Apr 2026) | ~7.15–8%+ |
| Average monthly private rent — UK (March 2026) | £1,377 (+3.4% annual) |
| Average monthly private rent — England (March 2026) | £1,434 (+3.4% annual) |
| Average monthly private rent — London (Feb 2026) | £2,273 (+1.7% annual — lowest in UK) |
| Average monthly private rent — North East (Feb 2026) | £770 — cheapest in England |
| Highest rent: Kensington & Chelsea (Feb 2026) | £3,628/month |
| Total residential transactions (2025) | 1,212,240 — +10% on 2024; in line with post-GFC norms |
| Residential transactions — March 2026 | ~104,070 (−41% vs March 2025 stamp duty rush) |
| Annual house price growth — North West (Jan 2026) | +3.1% — highest in England |
| Annual house price growth — Yorkshire & Humber (Q4 2025) | +3.9% — strongest in England (Feb data) |
| Annual house price fall — London (Mar 2026) | −2.1% — 6 consecutive months of annual falls |
| First-time buyer numbers (2025) | Highest since the Global Financial Crisis (Savills) |
| Gap between FTB and home mover prices (Great Britain) | £103,207 |
| Knight Frank house price growth forecast 2026 | +1.5% (revised down from +3%) |
| UK Finance: fixed-rate mortgages ending in 2026 | 1.8 million |
Source: HM Land Registry / ONS, UK House Price Index March 2026 (published 20 May 2026); ONS, Private Rent and House Prices UK: March 2026 (published 25 March 2026); Halifax House Price Index April 2026 (published 8 May 2026); Nationwide House Price Index April 2026; Zoopla House Price Index April 2026; Bank of England, MPC decision 30 April 2026; Savills UK Housing Market Update February 2026; Which? UK House Prices tracker (updated 20 May 2026); Moneyfacts cited in MoneyWeek May 2026
Several facts in this table demand immediate attention because they define the structural character of the UK housing market in 2026. First, the spread across the four major indices — from £268,132 (Land Registry) to £299,313 (Halifax) — is a persistent feature of UK housing data, reflecting methodological differences: Land Registry captures all completed sales including cash purchases; Halifax and Nationwide capture only mortgage-based valuations. Rightmove’s £378,304 is an asking price, not a sold price. Second, the sharp mortgage rate spike in mid-May 2026 — from around 4.8–4.9% in early March to 5.75% for two-year fixes — reflects global energy market disruption following Middle East conflict, which has driven inflation back to 3.3% and prompted markets to price out near-term Bank of England cuts. Third, the 1.8 million fixed-rate mortgages due to end in 2026 (UK Finance) represent a significant remortgage cliff, with many households rolling off deals fixed at rates of 1–2% onto rates of 5%+ — a household income shock that continues to ripple through consumer spending and housing demand.
UK Average House Prices in 2026 — National Trend
UK AVERAGE HOUSE PRICE ANNUAL TREND — LAND REGISTRY / ONS
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Year | Avg Price | Annual Change | Bar
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2019 | £235,000 | +1.4% | ████████████████████████
2020 | £251,000 | +6.8% | ██████████████████████████
2021 | £270,000 | +7.6% | ████████████████████████████
2022 | £296,000 | +9.6% | ███████████████████████████████ ← peak
2023 | £285,000 | −3.7% | █████████████████████████████
2024 | £265,000 | −0.9% | ████████████████████████████
2025 | ~£271,000 | +2.5% | ████████████████████████████
Mar 2026 | £268,132| 0.0% | ████████████████████████████
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Source: HM Land Registry / ONS UK House Price Index (May 20, 2026)
| Period | Average UK House Price | Annual Change | Source / Index |
|---|---|---|---|
| 2019 | ~£235,000 | +1.4% | Land Registry |
| 2021 | ~£270,000 | +7.6% | Land Registry — pandemic surge |
| 2022 | ~£296,000 | +9.6% | Land Registry — post-pandemic peak |
| 2023 | ~£285,000 | −3.7% | Land Registry — rate shock correction |
| November 2025 | ~£271,000 | +2.5% | Land Registry |
| January 2026 | ~£268,000 | +1.1% (England) | Land Registry (−0.3% monthly) |
| February 2026 | ~£268,000 | +1.2% | Land Registry (+0.1% monthly) |
| March 2026 | £268,132 | 0.0% | Land Registry ← most recent |
| April 2026 (Halifax) | £299,313 | +0.4% | Halifax HPI |
| April 2026 (Nationwide) | £278,880 | Steady | Nationwide HPI |
Source: HM Land Registry / ONS, UK House Price Index March 2026 (published 20 May 2026); GOV.UK UK House Price Index Summary: March 2026; Halifax House Price Index April 2026 (published 8 May 2026); Nationwide House Price Index April 2026
The UK house price story since 2022 is one of a sharp rise, a moderate correction, and a stabilisation at levels still well above pre-pandemic norms. The pandemic-era surge from ~£235,000 in 2019 to a peak of ~£296,000 in late 2022 — an increase of over 26% in three years — was driven by record-low mortgage rates, the stamp duty holiday, and the “race for space” as households sought larger homes following lockdowns. The sharp rise in Bank of England rates from 0.1% in December 2021 to 5.25% by August 2023 produced a correction: the average price fell to around £265,000 by early 2024. Since then, prices have edged sideways, with the March 2026 Land Registry figure of £268,132 representing essentially zero growth on a year earlier — a remarkable combination of affordability constraints preventing upward movement and constrained supply preventing a deeper fall.
The headline national average masks vastly different outcomes by property type and location. Detached houses have held their value best throughout the cycle; flats and leasehold properties — particularly in London, where cladding remediation costs, elevated service charges, and leasehold reform uncertainty continue to weigh — have seen genuine price falls. Hamptons analysis noted that nearly 15% of London homes sold in 2025 went for less than their previous purchase price, with losses concentrated in the flat sector. Nationally, Zoopla’s April 2026 index confirms modest annual growth of +1.3% to an average of £271,500, and projects 1% to 1.5% national price growth for 2026 overall — a scenario dependent on mortgage rates not rising further from current elevated levels. Knight Frank has revised its 2026 forecast down from +3% to +1.5% in light of Middle East-driven rate volatility.
UK Regional House Prices in 2026 — North-South Divide
REGIONAL HOUSE PRICE ANNUAL GROWTH — ENGLAND + NATIONS (JAN–FEB 2026)
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Region | Annual Change | Avg Price | Bar
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Northern Ireland | +7.5% | £196,000 Q4 | ██████████████████████████████████████
Wales | +2.5% | £210,000 | ██████████████████████████████
Scotland | +2.3% | £187,000 | █████████████████████████████
North West (England) | +3.1% | — | █████████████████████████████████
Yorkshire & Humber | +3.9% | — | ████████████████████████████████████
East Midlands | +2.1% | — | ████████████████████████████
England overall | +0.8% | £290,000 | █████████████████████
South East | −0.5% | — | ░░░ (negative)
South West | −0.1% | — | ░ (negative)
London | −2.1% | £542,000 | ░░░░░░░░░ (most negative)
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Source: HM Land Registry / ONS UK HPI March 2026; Land Registry Jan 2026
| Region / Nation | Average House Price | Annual Change (Latest) |
|---|---|---|
| London | £542,000 | −2.1% (6 consecutive months of annual falls) |
| South East | — | −0.5% |
| South West | — | −0.1% |
| England overall | £290,000 | +0.8% |
| Yorkshire & Humber | — | +3.9% — strongest in England (Feb) |
| North West | — | +3.1% — highest Jan; +6.3% rental growth |
| East Midlands | — | +2.1% |
| Scotland | £187,000–£188,000 | +1.3%–+2.3% |
| Wales | £210,000 | +2.5% |
| Northern Ireland | £196,000 (Q4 2025) | +7.5% ← UK’s fastest growth |
Source: HM Land Registry / ONS, UK House Price Index March 2026 (published 20 May 2026); ONS, Private Rent and House Prices UK: March 2026; HM Land Registry UK HPI February 2026; Nationwide Quarterly Regional House Price Statistics Q4 2025
The north-south divide in UK house prices has rarely been as pronounced as it is in 2026, and it is moving in exactly the opposite direction to what many would assume. Northern Ireland is the standout performer at +7.5% annual growth to an average of £196,000 in Q4 2025 — driven by a combination of relative affordability, strong local labour market conditions, and a supply shortage that has persisted for years. Yorkshire and the Humber (+3.9%), the North West (+3.1%), and Wales (+2.5%) all comfortably outperform England’s national average of +0.8%. Scotland’s average of £187,000–188,000 reflects +1.3% to +2.3% growth depending on the period measured.
London, by contrast, is experiencing its sixth consecutive month of annual house price falls, with the March 2026 figure showing a −2.1% decline taking the average London property to £542,000 — still more than double the national average but losing ground in both absolute and relative terms. This is primarily an affordability story: with average two-year fixed mortgage rates now at 5.75%, a buyer putting a 25% deposit on a £542,000 London property faces monthly repayments that would consume well over 40% of gross median earnings. The South East and South West are also in slightly negative territory. The pattern points to a structural recalibration of the UK housing market: buyers are opting for better-value properties in northern cities and devolved nations where rental yields are higher, commuting is less relevant, and the prospect of meaningful price appreciation is more credible.
UK Mortgage Rates and Bank of England Base Rate in 2026
UK MORTGAGE RATE TIMELINE — 2025 TO MAY 2026
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Date | BoE Base Rate | Avg 2-Yr Fix | Avg 5-Yr Fix
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Jan 2025 | 4.75% | ~5.35% | ~5.20%
Mid-2025 | 4.50% | ~4.80% | ~4.70%
Dec 2025 | 3.75% | ~4.49% | ~4.50% ← year low
Feb 2026 (start)| 3.75% | ~4.85% | ~4.94%
Mar 2026 (start)| 3.75% | ~4.83% | ~4.95% ← pre-conflict
Apr 30 2026 | 3.75% (held) | ~5.56% | ~5.54%
Mid-May 2026 | 3.75% (held) | ~5.75% | ~5.67% ← conflict impact
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SVR (Apr 2026): ~7.15%; some lenders above 8%
Source: Bank of England MPC; Moneyfacts via MoneyWeek/Uswitch May 2026
| Metric | Start of 2025 | End of 2025 | March 2026 | Mid-May 2026 |
|---|---|---|---|---|
| Bank of England base rate | 4.75% | 3.75% | 3.75% | 3.75% (held) |
| Average 2-year fixed rate | ~5.35% | ~4.49% | ~4.83% | ~5.75% |
| Average 5-year fixed rate | ~5.20% | ~4.50% | ~4.95% | ~5.67% |
| Average SVR | — | — | — | ~7.15–8%+ |
| Best 2-yr fix at 60% LTV | — | — | — | 4.47% (NatWest) |
| Best 5-yr fix | — | — | — | ~4.35% (AIB) |
| Fixed-rate mortgages ending in 2026 | — | — | — | 1.8 million (UK Finance) |
| Inflation (April 2026) | — | — | — | 2.8% (down from 3.3% in March) |
Source: Bank of England Monetary Policy Committee decisions 2025–2026; Moneyfacts data cited in MoneyWeek (18 May 2026) and SmartSMS Solutions (April 2026); Uswitch current mortgage rates (19 May 2026); UK Finance forecast; HomeOwners Alliance Mortgage Rate Forecast (May 2026); Brunel University analysis (2026)
Mortgage rates in the UK experienced a significant and disruptive surge in spring 2026. After the Bank of England cut its base rate four times during 2025 — from 4.75% in January to 3.75% by December — the trajectory appeared favourable, and sub-4.5% two-year fixed deals had briefly appeared in February and early March 2026. Then Middle East conflict in March 2026 sent oil and gas prices soaring, driving UK inflation back from ~3% to 3.3% in March 2026 (rising further before falling to 2.8% in April as energy cap adjustments eased fuel costs). Swap rates — which underpin fixed mortgage pricing — jumped sharply, pulling two-year fixed rates from 4.83% in early March to 5.75% by mid-May 2026. The Bank of England held the base rate at 3.75% on 30 April 2026, with markets now expecting at most one further cut in 2026, down from prior expectations of three or four.
The practical impact for households is severe. 1.8 million fixed-rate mortgage deals are due to end in 2026 (UK Finance), meaning well over a million households face rolling from deals fixed at 1–3% onto rates above 5%. A homeowner with a £250,000 outstanding mortgage rolling from a 2% five-year fix onto a 5.5% deal faces an estimated monthly payment increase of £400–500. The average standard variable rate of 7.15% — the default rate borrowers fall onto when their deal expires — is the most expensive outcome and makes active remortgaging essential. The easing underway since late 2024 has partially reversed, and the best available rates of 4.29% (First Direct, 2-year remortgage) and 4.35% (AIB, 5-year) remain available for those with high equity and strong credit, but the average borrower faces a materially more expensive mortgage market in mid-2026 than appeared likely just three months ago.
UK Private Rent Statistics in 2026 — Regional Breakdown
AVERAGE MONTHLY PRIVATE RENT BY NATION — UK (MARCH 2026, ONS)
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Nation / Region | Avg Monthly Rent | Annual Change
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UK average | £1,377 | +3.4%
England | £1,434 | +3.4%
London | £2,273 (Feb) | +1.7% ← lowest growth
North East | £770 (Feb) | +7.6% ← highest growth (England)
Scotland | £1,022 | +2.1%
Wales | £830 | +4.8%
Northern Ireland | £880 | +5.0% (to Jan 2026)
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Highest rent: Kensington & Chelsea £3,628/month (Feb 2026)
Lowest rent: Dumfries & Galloway £544/month (Feb 2026)
Source: ONS Private Rent and House Prices UK: March 2026 (March 25, 2026)
| Nation / Region | Average Monthly Rent | Annual Change | Key Detail |
|---|---|---|---|
| UK overall | £1,377 | +3.4% | March 2026 (ONS, provisional) |
| England | £1,434 | +3.4% | March 2026 |
| London | £2,273 | +1.7% | February 2026 — lowest growth in UK |
| North East | £770 | +7.6% | February 2026 — highest growth in England |
| Yorkshire & Humber (Goodlord) | — | +6.6% | March 2026 — strong growth |
| North West (Goodlord) | — | +6.3% | March 2026 |
| Scotland | £1,022 | +2.1% | March 2026 |
| Wales | £830 | +4.8% | March 2026 |
| Northern Ireland | £880 | +5.0% | To January 2026 |
| Kensington & Chelsea (most expensive) | £3,628/month | — | February 2026 |
| Dumfries & Galloway (cheapest) | £544/month | — | February 2026 |
| Oxford (most expensive outside London) | ~£1,952/month | — | Feb 2026 |
Source: ONS, Private Rent and House Prices UK: March 2026 (published 25 March 2026); ONS Housing page updated May 2026; Goodlord Rental Index March 2026; Big Issue citing ONS March 2026 data
Average monthly private rent in the UK reached £1,377 in March 2026, up 3.4% year-on-year — a slowdown from the 8–12% annual growth rates recorded in 2022–23 but still meaningfully above wage growth in many sectors. The rental market in 2026 is at a structural turning point: Zoopla declared the “rental boom is over” and found that rents for new lets rose just 2.8% in the year to April 2025, as the ceiling of what tenants can afford has been reached in many markets. This affordability ceiling — not any meaningful increase in rental supply — is the primary reason rent inflation is slowing. The rental sector lost a significant volume of landlords over 2022–2025 as mortgage costs squeezed buy-to-let returns, and the Renters’ Rights Act (due to abolish Section 21 from April 2026) has prompted further landlord exits, keeping supply tight.
The inversion in the rental growth picture is one of the most striking features of the market. London rental growth at just 1.7% is the lowest of any UK region or nation — and it is rising (this was the first uptick after 6 consecutive months of deceleration). Meanwhile, the North East (+7.6%), Yorkshire and the Humber (+6.6%), and the North West (+6.3%) are recording the sharpest rental inflation — areas where private sector growth is strong, housing supply has not kept pace with demand from workers relocating from southern England, and Local Housing Allowance (still frozen from April 2025) leaves a growing gap between what housing benefit covers and what landlords charge. The gap between the £3,628/month charged in Kensington and Chelsea and the £544/month available in Dumfries and Galloway represents a 6.7-fold difference across the same national rental market — a figure that encapsulates the extraordinary geographic inequality in the UK’s private housing sector.
UK Housing Transactions and Market Activity in 2026
RESIDENTIAL PROPERTY TRANSACTIONS — UK (HMRC, ANNUAL)
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Year | Transactions | Change | Key Driver
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
2019 | ~1,073,000 | — | Pre-pandemic baseline
2021 | ~1,479,000 | +38% | Stamp duty holiday peak
2022 | ~1,258,000 | −15% | Rate shock begins
2023 | ~1,017,000 | −19% | Buyer retreat; 15-yr low
2024 | ~1,101,000 | +8% | Gradual recovery
2025 | 1,212,240 | +10% | Stamp duty rush + rate cuts
Mar 2026 | ~104,070 | −41% YoY | Post stamp-duty reversal
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2025 full year was +10% on 2024 and in line with post-GFC norms
Source: HMRC; Savills February 2026; Which? May 2026
| Metric | 2024 | 2025 | Early 2026 |
|---|---|---|---|
| Total residential transactions | ~1,101,000 | 1,212,240 | Slower pace expected |
| Year-on-year change | +8% | +10% | — |
| March 2025 transactions | — | ~175,000+ (stamp duty rush) | — |
| March 2026 transactions | — | — | ~104,070 (−41% vs Mar 2025) |
| November 2025 transactions (SA) | ~92,900 | 100,350 | +8% year-on-year |
| First-time buyer numbers (2025) | — | Highest since GFC | — |
| Mortgage approvals peak-to-trough change (2023) | −31.7% | — | Recovering |
| Sales agreed (Apr 2026 vs Apr 2025) | — | — | −4% (Rightmove) |
| Buyer enquiries (Apr 2026 vs Apr 2025) | — | — | −2% (Zoopla) |
Source: HMRC Monthly Property Transactions; Savills UK Housing Market Update February 2026; Which? UK House Prices tracker (20 May 2026); Rightmove HPI April 2026 cited in MoneyWeek; Zoopla House Price Index April 2026
Total residential transactions in 2025 reached 1,212,240 — a 10% increase on 2024 and a figure that Savills described as “in line with post-Global Financial Crisis norms,” marking a meaningful recovery from the near-15-year low of ~1,017,000 recorded in 2023 when soaring mortgage rates paralysed the market. The 2025 annual figure was partly front-loaded: a huge rush of completions in March 2025, as buyers scrambled to complete before the end of the stamp duty relief threshold in England (which reduced the first-time buyer nil-rate band from £425,000 back to £300,000 from 1 April 2025), inflated the first-quarter data substantially. The resulting hangover is visible in March 2026: ~104,070 transactions represent a −41% year-on-year decline, but compared to the distorted March 2025 figure rather than reflecting a genuine market collapse.
The underlying market in early 2026 is characterised by adequate stock but cautious buyers. Rightmove notes that sales agreed in April 2026 were 4% below April 2025 but 2% above April 2024 — a reassuring longer-term comparison. Buyer enquiries are 2% below a year ago (Zoopla), but homes are broadly selling in similar timeframes to 2025 except in London and southern England where buyer sensitivity to mortgage costs is most acute. The most significant positive trend is the first-time buyer recovery: numbers hit their highest level since the Global Financial Crisis in 2025, driven by easing mortgage rates through mid-year, the Mortgage Guarantee Scheme launched in July 2025, and the persistence of first-time buyer demand despite cost pressures. With 1.8 million fixed-rate mortgages expiring in 2026, the remortgage market will dominate lender activity through the year, while transaction volumes are likely to settle in the 1.1–1.15 million range absent any new policy intervention.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
