Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Mortgage Approvals Edge Up in June, Market Caution Persists
The latest Bank of England figures show that mortgage approvals for house purchases rose to 58,200 in June 2026, up from 56,565 in May. However, this figure remains below the six-month average of approximately 61,435, indicating that the UK housing market is yet to fully recover.
Industry commentators note that while the increase in approvals is a positive sign, ongoing political and economic uncertainty continues to influence buyer and seller decision-making. The Bank of England’s decision to hold the base rate steady at recent meetings has provided some reassurance, but higher borrowing costs and inflation remain key challenges for prospective buyers.
The report highlights that the effective interest rate on newly-drawn mortgages increased to 4.35% in May. This rise in borrowing costs, alongside increased household expenses such as energy prices, is placing additional pressure on household finances.
For letting agents and inventory clerks, the current market conditions suggest that while there is some renewed activity, many buyers are taking a cautious approach. Decision-making is being delayed as buyers weigh their options and negotiate prices, taking advantage of increased choice in the market.
The figures also reflect that, despite a period of relative economic stability, confidence has not fully returned to the market. Approvals remain below the average recorded over the previous six months, and affordability continues to be a concern for many aspiring homeowners.
Ongoing uncertainty in the Middle East and its potential impact on global energy markets and inflationary pressures are also noted as factors that could affect the market in the coming months.
Source: The Negotiator