UK Housebuilding & Construction: Home Truths: UK Housing Market Chart Book

Research evidence excerpt

UK Housebuilding & Construction: Home Truths: UK Housing Market Chart Book

Equity Research

26 May 2026

UK Housebuilding & Construction

Home Truths: UK Housing Market

Chart Book

HPI signals remain mixed, with modest monthly gains offset UK Housebuilding & Construction

by affordability pressures & cooling demand indicators. NEUTRAL

Mortgage approvals resilient so far, but housebuilding UK Housebuilding & Construction

Emily Biddulph

commentary and RICS survey suggest scope for activity to +44 (0)20 3555 2947

soften. emily.biddulph@barclays.com

Barclays, UK

Shruti Hanumant Dhumal

• We have yet to see a headline slowdown in market activity, but it might just be too early +91 (0)22 6175 1786

to see it in the data: UK mortgage approvals were 63.5k in Mar '26, which is broadly flat both shrutiha.dhumal@barclays.com

m/m and y/y, ahead of Bloomberg consensus, which had been expecting a decline to c60k. Barclays, UK

We are mindful that several housebuilders have talked about good sales rates through to

April, but a decline in new enquiries and customer footfall as the month went on, suggesting Data Science & Applied AI

higher mortgage rates (up c100bps YTD) might start impacting mortgage approvals data from Vincenzo Pota(iii)

+44 (0)20 3134 2097 April onwards.

vincenzo.pota@barclays.com

• Northern markets remain stronger than southern markets: Rightmove reported a 1.2% Barclays, UK

m/m rise in average asking prices in May. However, affordability pressures are reinforcing a

distinct north–south divergence in asking price momentum, with gains in the more affordable

North East (+2.7%) and North West (+2.6%) regions, contrasting with declines in London

(-2.4%) and the South East (-1.6%).

• Interest levels from potential buyers have, however, reportedly waned while inventory