Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Mortgage Affordability Remains a Challenge as Buyers Stay Cautious
Mortgage affordability continues to be a significant challenge for UK homebuyers, according to Propertymark’s Housing Insight report for May 2026. The report highlights that, despite a more balanced housing market and a stable Bank of England base rate at 3.75% in May, affordability pressures are still influencing buyer behaviour.
Propertymark’s findings show that stock levels have increased slightly, offering buyers more choice. However, households remain cautious as they assess their ability to meet mortgage costs. The average number of prospective buyers registering with member branches fell to 64 in May 2026, indicating a slight softening in demand as affordability remains a key factor.
Mortgage data from the report presents a mixed picture. Gross mortgage advances fell in the first quarter of 2026, while the value of new mortgage commitments increased compared to the previous quarter. The report also notes ongoing pressure on household finances, with 32% of adults reporting that paying their rent or mortgage was ‘very or somewhat difficult’ between 6 and 31 May 2026.
Mortgage arrears remained broadly stable, with little movement in the number of loan accounts in arrears and the amount owed in Q4 2025. However, new possession cases increased slightly during Q1 2026.
Affordability concerns are also reflected in property pricing and transaction trends. Most properties continued to sell below asking price in May 2026, with 84% of member agents reporting sales below asking price and only 11% reporting sales at the asking price. The time taken for sales to progress remained extended, with around 40.4% of agents stating that most agreed sales took more than 17 weeks from acceptance to exchange.
These trends are relevant for UK letting agents and inventory clerks, as ongoing affordability pressures and extended transaction times may impact rental demand, property turnover, and the pace of new tenancies.
Source: Mortgage Solutions