Overview
- Nationwide reported February prices rose 0.3% month on month and 1.0% year on year, putting the average UK home at £273,176.
- Bank of England data show the effective rate on newly drawn mortgages eased to 4.09% in January, while approvals slipped to about 60,000, a two‑year low.
- Activity strengthened through 2025, with total transactions up roughly 10%, first‑time buyer mortgage completions up about 18% and mortgage‑backed home‑mover deals up around 15%.
- Mortgage‑financed purchases account for a larger share than in recent years, with cash transactions at 35% in 2025, and buy‑to‑let demand remains subdued as higher rates and renters’ reforms weigh on landlords.
- Analysts highlight fresh downside risks after Middle East escalation pushed global yields and U.S. 30‑year mortgage rates back above 6% (around 6.12%), potentially slowing the UK market’s tentative recovery.