Hello from Drivers & Norris,
We’re starting 2026 with fresh insight into the UK housing market. The latest Bank of England data shows that overall borrowing activity and mortgage approvals remain strong, despite some fluctuations at the end of last year.
Net borrowing by individuals reached £4.5 billion in November 2025, up from £4.2 billion in October. Mortgage approvals for house purchases were 64,500, while remortgage approvals rose to 36,600. Gross mortgage lending was £23.7 billion, and repayments fell to £19.4 billion. The annual growth rate for net mortgage lending increased to 3.3 percent, the strongest since January 2023.
Interest rates on newly drawn mortgages were 4.2 percent, while the average rate on outstanding mortgages was 3.9 percent, showing that borrowing costs remain relatively stable for homeowners.
These figures indicate that the housing market remains active. Buyers, sellers, and investors are continuing to engage despite wider economic uncertainty. Understanding these trends can help you make informed property decisions in the months ahead.
— Drivers & Norris
Source: Property Industry Eye