Mortgage approvals for house purchases saw an increase in June 2026, reaching 58,200. This is an rise from 56,565 approvals recorded in May, according to data released by the Bank of England.
Despite this increase, the number of approvals remains below the six-month average of approximately 61,435. This suggests that caution persists within the housing market.
Industry figures note that ongoing geopolitical tensions, domestic political changes, and rising borrowing costs continue to influence decisions for both buyers and sellers. The effective interest rate on newly-drawn mortgages increased to 4.35% in May.
Some buyers are reportedly taking advantage of their bargaining power and the choice available across most price ranges. However, affordability pressures persist, with inflation remaining above the Bank of England's 2% target and higher household costs, including increased energy prices from 1 July, affecting finances.