Home Truths: UK Housing Market Chart Book

Research evidence excerpt

Home Truths: UK Housing Market Chart Book

Equity Research

16 July 2026

UK Housebuilding & Construction

Home Truths: UK Housing Market

Chart Book

Higher mortgage rates and affordability pressure are UK Housebuilding & Construction

weighing on buyer demand, with mortgage approvals NEUTRAL

weakening. House prices remain broadly stable, but with UK Housebuilding & Construction

Emily Biddulph

material regional differences. +44 (0)20 3555 2947

emily.biddulph@barclays.com

Barclays, UK

• Mortgage approvals weaken as higher rates weigh on buyer demand: UK mortgage

approvals fell sharply in May, with approvals for house purchase down to 56.2k in May 2026 Shruti Hanumant Dhumal

from 66.0k in April. This is the lowest level since December 2023 and coming in below the +91 (0)22 6175 1786

shrutiha.dhumal@barclays.com recent six-month average. The decline suggests a clear softening in buyer activity, with higher

borrowing costs (average advertised mortgage rate for 2 yr 90-94% LTV is up 55 bps YTD at

5.45% and cheapest rates are up 61 bps YTD at 4.58%) and weaker confidence weighing on Data Science & Applied AI

demand with broader affordability constraints (33% FTB mortgage payments to take-home Vincenzo Pota(iii)

ratio for Q2 26 vs. LTA of 30%). +44 (0)20 3134 2097

vincenzo.pota@barclays.com

• House prices broadly stable, but market conditions remain soft: Nationwide reported that Barclays, UK

house prices were stable m/m in June, with annual growth at +2.2% from +1.7% in May;

Lloyds HPI (previously, Halifax HPI) was at +0.2% m/m and +0.6% y/y in June (vs. -0.2% m/m

and +0.5% y/y in May). Rightmove’s asking-price index for June showed a 0.6% m/m fall to

£376,191, implying a 0.5% y/y decline. Rightmove noted this was the biggest June drop in 14