Mortgage Market News 2025

Mortgage News – 30th June 2025

Lenders have strengthened support for first-time buyers, with Nationwide increasing LTV limits for new builds and Halifax confirming continued 95% LTV lending beyond the Mortgage Guarantee scheme. Meanwhile, property transactions rose sharply in May, reflecting short-term market momentum despite a year-on-year dip. Housebuilding activity also increased, and new data highlighted long-term affordability barriers still blocking millions from homeownership.

Mortgage Rate & Criteria Changes

Barclays reduced rates across its residential purchase and remortgage mortgage products, including a cut from 3.96% to 3.88% on its 2-year fixed at 60% LTV and from 3.98% to 3.91% on the equivalent remortgage product.
Santander updated affordability calculations for new build homes, allowing customers to borrow more by factoring in lower running costs, while continuing to offer up to 95% LTV and extended nine-month mortgage offers.
Leeds Building Society reduced affordability stress testing rates by up to 1.24%, increasing potential borrowing by up to £34,000 for eligible applicants.
Accord Mortgages reduced residential fixed rates, cutting 2- and 3-year deals by 0.09% and 5-year deals by 0.03%.
Atom bank reduced Near Prime residential mortgage rates by up to 0.20% across 2-, 3-, and 5-year fixed products, marking its second rate cut in June.
BM Solutions reduced buy-to-let remortgage rates by up to 0.24%, including cuts to both green and standard 5-year fixed products.
Coventry for Intermediaries reduced fixed mortgage rates across its residential and buy-to-let ranges by up to 0.10%.
Fleet Mortgages reduced 5-year buy-to-let rates by up to 0.15% across all LTV tiers and introduced £1,000 cashback on 55% LTV products, while also updating its SPV lending criteria to support more complex ownership structures.

Nationwide expands new build mortgage support with increased LTV options

Nationwide increased its maximum loan-to-value (LTV) to 95% for new build houses and 85% for new build flats. It also allowed the use of its Helping Hand mortgage feature for new build purchases, enabling eligible first-time buyers to borrow up to six times their income at 95% LTV. Additionally, the lender extended its mortgage offer period for new build properties from six months to nine months, aiming to provide more flexibility and certainty during construction.

Halifax to continue 95% LTV lending post-Mortgage Guarantee scheme

Halifax confirmed it will maintain 95% loan-to-value (LTV) mortgages for first-time buyers and homemovers after the Government’s Mortgage Guarantee scheme ends on 30th June 2025. Lending criteria will remain unchanged for loans above 90% LTV, with new applications requiring a minimum 5% personal deposit and enhanced credit checks. The offering excludes flats and certain schemes, with strict affordability and property ownership criteria in place.

Residential property transactions rise 25% in May despite annual drop

HMRC reported a 25% month-on-month increase in seasonally adjusted residential property transactions in May 2025, reaching 81,470. Non-seasonally adjusted transactions rose even more sharply by 42%, totalling 80,530. However, both figures remained lower than in May 2024, with seasonally adjusted transactions down 12% and non-adjusted figures falling 13% year-on-year. UK monthly property transactions commentary 27^th June 2025

Homes England reports annual rise in housebuilding starts and completions

Homes England reported 38,308 housing starts and 36,872 completions between April 2024 and March 2025, reflecting a 5% increase in starts and a 12% rise in completions compared to the previous year. Of these, 30,087 starts were for affordable housing, with social rent starts rising 43% to 5,680. The Affordable Homes Programme accounted for 96% of affordable housing starts, up from 74%, while completions of affordable homes rose 15% to 28,370. New Homes England 2024 to 2025 housebuilding statistics published

3.5 million households remain blocked from homeownership, says IMLA

Research by the Intermediary Mortgage Lenders Association (IMLA) found that 3.5 million households who could have expected to buy since the financial crisis are still unable to do so, up from 2.7 million in 2021. The report attributes this to overly strict regulations, particularly loan-to-income limits, despite evidence that many potential buyers could comfortably afford a mortgage. IMLA called for regulatory reform and a shift in perception to unlock pent-up demand and support first-time buyers into homeownership. 3.5 million first-time buyers waiting in the wings

Greater choice for buyers slows UK house price growth to 1.4%

Zoopla’s latest House Price Index: June 2025 showed annual UK house price growth slowed to 1.4%, with the average price reaching £268,400. The number of homes for sale increased, giving buyers more choice and dampening price growth, especially in the South where supply rose by up to 19%. Stronger growth was seen in affordable areas, while high-value regions like London and parts of the South West experienced price declines.

Swap rates fall again as downward trend continues across terms

Swap rates continued to decline this week, with the 2-year swap rate dropping to 3.586%, down 0.096% from last week and 0.230% lower than a month ago. The 5-year swap rate also fell to 3.615%, a decrease of 0.087% from last week and 0.205% down over the month. Compared to the same time last year, the 2-year rate has fallen by 0.883%, while the 5-year rate is down 0.313%.

Swap Rate	26-Jun-25	27-May-25	27-Jun-24
2 Year	3.586%	3.816%	4.469%
5 Year	3.615%	3.820%	3.928%

Updated 27^th June 2025

Mortgage News – 23rd June 2025

Last week the Bank of England held the base rate at 4.25% in June, citing persistent core inflation and global uncertainties as key reasons for its cautious stance. Although headline inflation eased slightly to 3.4% in May, it remains above the 2% target, with services and goods prices continuing to apply upward pressure. The broader economic picture remains unsettled, with cooling house prices, slowing rental growth, and signs of resilience in SME lending activity.

Mortgage Rate & Criteria Changes

Gen H reduced mortgage rates by up to 0.50% across its full product range, including cutting the New Build Boost rate to 5.95%.
Virgin Money reduced fixed rates across its range by up to 0.15% and introduced two new 5-year fixed exclusive products at 75% and 85% LTV.
Santander reduced fixed mortgage rates by up to 0.22% across its product range.
Clydesdale Bank reduced residential and buy-to-let mortgage rates by up to 0.25% across selected products.
Principality reduced mortgage rates by up to 0.25% across residential, Help to Buy (Wales), JBSP, holiday let, and buy-to-let product ranges.
LendInvest reduced buy-to-let mortgage rates by 0.10% across its full product range.
Foundation Home Loans launched limited edition BTL products and reduced its F1 expat 2-year fixed rate by 0.50% to 6.09%.
Accord Mortgages reduced buy-to-let mortgage rates by 0.08% across its product range.

Bank of England Held Base Rate at 4.25% Amid Inflation Concerns

The Bank of England held the base rate at 4.25% in June, maintaining a cautious stance due to persistent core and services inflation. Despite headline CPI easing to 3.4%, underlying inflation pressures and global risks, including Middle East tensions, led the Monetary Policy Committee to pause further rate cuts. Market expectations now point to the next potential cut in August, pending economic developments.

UK Inflation Fell to 3.4% in May as Transport Costs Dropped

Inflation dipped slightly in May 2025, with the Consumer Prices Index rising by 3.4% annually, down from 3.5% in April, driven mainly by lower transport costs. Core inflation also eased to 3.5%, although some upward pressure came from food and household goods. Despite the slowdown, inflation remained above the Bank of England’s 2% target, and the overall economic outlook remains uncertain due to external risks and domestic pricing pressures. Consumer price inflation, UK: May 2025

High Street Bank Lending to SMEs Reached Highest Level Since 2022

Lending by high street banks to small and medium-sized enterprises (SMEs) rose to £4.6bn in Q1 2025, marking the highest level since Q2 2022. This represented a sixth consecutive quarter of growth, with lending rising 14% year-on-year, and the smallest businesses seeing lending increase by nearly 30%. Approvals for new loans and overdrafts also climbed, though the total value of these approvals was slightly down. UK Finance – Increased SME lending by high street banks

New Sellers Reduced Asking Prices in June Amid Rising Market Competition

New seller asking prices dropped by 0.3% in June, equating to a £1,277 fall to an average of £378,240, according to Rightmove – HPI Index June. Price reductions were most pronounced in London and the South, influenced by recent Stamp Duty changes and a rise in housing supply. However, northern regions like the North West, Wales, and Yorkshire & The Humber experienced modest price increases.

Rental Growth Slowed While House Price Inflation Eased in Latest ONS Data

UK private rents rose by 7.0% in the year to May 2025, slowing slightly from 7.4% in April, with the highest increases seen in Wales and Northern Ireland. Meanwhile, house price growth cooled to 3.5% annually in April, down from 7.0% the previous month, as average prices reached £265,000. Regional house price increases were led by Scotland and Wales, while England saw more moderate growth. Private rent and house prices, UK: June 2025

Interest-Only Mortgage Stock Fell Sharply in 2024

UK Finance reported a 17% decline in interest-only mortgage stock during 2024, with 541,000 pure interest-only homeowner mortgages outstanding at year-end. Partial interest-only loans also dropped by 13%, while higher LTV interest-only loans fell by 25.7%, now making up just 5% of the total. The number of interest-only loans due to mature by 2027 also fell significantly, down 35.8% from the previous year. UK Finance – Interest-only mortgages: June 2025

L&G Paid £347m in Group Protection Claims During 2024

Legal & General paid out £347 million in Group Protection claims in 2024, covering group life, income protection, and critical illness policies. Cancer and mental health were the leading causes of claims under income protection, with strong return-to-work outcomes achieved through early intervention and support services. The insurer also reported increased use of preventative health services and rehabilitation assessments across the year.

Swap Rates Declined Again as Market Adjusted to Rate Outlook

Swap rates continued their downward trend, with the 2-year swap falling to 3.682%, a weekly drop of 0.098% and 0.717% lower than the same time last year. The 5-year swap rate also declined to 3.702%, down 0.087% from last week and 0.121% below the level seen a year ago. Both the 2- and 5-year rates have now decreased by over 0.14% compared to last month.

Swap Rate	12-Jun-25	13-May-25	13-Jun-24
2 Year	3.652%	3.755%	4.490%
5 Year	3.663%	3.771%	3.937%

Updated 13^th June 2025

Mortgage News – 16th June 2025

This week saw a range of significant developments across housing, finance, and the wider economy. The Government pledged £39bn to affordable housing, later life lending rose by 33.5% in Q1, and rental growth eased to a four-year low. Meanwhile, UK GDP fell by 0.3% in April, construction output continued to rise, NatWest appointed its first chief AI research officer, and swap rates declined again, reflecting shifting market expectations.

Mortgage Rate & Criteria Changes

Halifax reduced selected fixed mortgage rates by up to 0.10% for homemovers and first-time buyers.
Suffolk Building Society relaxed lending criteria for foreign nationals, expats, and downsizers.
Buckinghamshire Building Society launched a 90% LTV 2-year fixed-rate mortgage at 6.35% for Skilled Worker visa holders.
Suffolk Building Society reduced interest only mortgage rates by up to 0.16%.
Market Harborough Building Society reduced residential fixed rates by up to 0.20%.
West Brom Building Society reduced mortgage rates by up to 0.23% and introduced new products across core, Shared Ownership, and new-build ranges.
Landbay reduced non-portfolio buy-to-let rates by up to 0.15%.
The Mortgage Works reduced its stress rate by 0.50% for new buy-to-let applications up to 65% LTV on 5-year fixed terms and like-for-like remortgages.
BM Solutions reduced selected buy-to-let and let to buy rates by up to 0.16%.
Fleet Mortgages launched new 2-year fixed-rate buy-to-let products and cut existing rates by up to 0.10%.
YBS Commercial Mortgages increased HMO LTVs, doubled loan limits, and cut rates by up to 0.20%.

Government pledged £39bn to affordable housing in 2025 Spending Review

The Government confirmed a £39bn commitment to affordable and social housing in the 2025 Spending Review, aiming to tackle the ongoing housing crisis. Funding includes direct investment in social rent projects across cities such as Blackpool, Preston, Sheffield, and Swindon, alongside a £10bn allocation through Homes England to attract private investment. The announcement marks a major step towards Labour’s pledge of building 1.5 million homes, though planning reform and local authority resources remain key concerns.

Later life lending surged in Q1 2025 with strong year-on-year growth

Later life mortgage lending rose sharply in Q1 2025, with 38,510 new loans advanced to borrowers over 55 — a 33.5% increase on the same period last year. The total value of lending reached £6.1bn, marking a 42.6% annual rise, while lifetime mortgages also grew by 11.1% in volume and 39.5% in value. Retirement interest-only (RIO) loans saw similar momentum, with 339 new loans totalling £33m, as older borrowers continued seeking flexible mortgage solutions. UK Finance Later Life Mortgage Lending Q1 2025

Rental growth slowed to a four-year low as affordability pressures eased demand

UK rental growth slowed significantly in the year to April 2025, with average rents for new tenancies rising just 2.8% — the weakest annual increase since July 2021. Regional growth softened, particularly in areas like Yorkshire and Scotland, while inner London and Dundee even recorded small rent falls. Despite a 16% drop in demand over the year, supply remains 20% below pre-pandemic levels, keeping competition for rentals high and pressure on low to middle-income renters ongoing. Zoopla Rental Market Report: June 2025

NatWest appointed its first chief AI research officer to drive innovation

NatWest Group appointed Dr Maja Pantic as its first chief AI research officer to strengthen its artificial intelligence capabilities. Pantic will focus on developing AI use cases across the bank, including generative AI, multimodal tools, and advanced automation to improve services and operations. Her role also involves researching how AI is reshaping banking and influencing future customer behaviour.

UK GDP dropped 0.3% in April 2025 as services sector weakened

UK GDP declined by 0.3% in April 2025, reversing a 0.2% gain in March, as the services sector contracted by 0.4% — its first decline since October 2024. The drop was driven by a 10.2% fall in legal activities linked to a slowdown following stamp duty land tax changes, and weaker performance in wholesale and motor trades. Despite this, GDP was still 0.9% higher than in April 2024, supported by earlier strength in production and construction.

RICS survey shows subdued market in May with signs of sales recovery ahead

The latest RICS UK Residential Market Survey for May 2025 indicated that while buyer demand and sales activity remained in decline, the pace of deterioration has slowed and short-term expectations are stabilising. The outlook for the next 12 months has improved, with 25% of respondents anticipating increased sales and 34% expecting modest house price growth. Meanwhile, the rental market remains under pressure, as rising tenant demand and falling landlord instructions continue to push rents upward. RICS residential property monitor May 2025

Construction output rose for third consecutive month in April 2025

UK construction output grew by 0.9% in April 2025, marking the third month of expansion, with increases recorded in both new work and repair and maintenance. Notably, infrastructure new work rose by 2.0%, and private housing repair and maintenance saw a 1.5% uplift. Over the three months to April, total output increased by 0.5%, reflecting steady sector resilience despite ongoing planning system challenges.

Swap rates fell again as both 2- and 5-year rates posted weekly and monthly declines

Swap rates continued to move lower in mid-June, with the 2-year rate falling to 3.652%, down 0.128% from last week and 0.103% from a month ago. The 5-year swap rate also dropped to 3.663%, a weekly decline of 0.126% and 0.108% lower than in mid-May. Compared to the same time last year, the 2-year rate is down significantly by 0.838%, while the 5-year rate is 0.274% lower.

Swap Rate	12-Jun-25	13-May-25	13-Jun-24
2 Year	3.652%	3.755%	4.490%
5 Year	3.663%	3.771%	3.937%

Updated 13^th June 2025

Mortgage News – 9th June 2025

The mortgage market experienced mixed momentum in recent months, with lending activity surging in Q1 ahead of Stamp Duty changes, only to fall sharply in April. Simultaneously, consumer credit borrowing increased, driven by higher credit card usage. Other key developments include growing calls for mortgage rule simplification, rising property sales, and a policy shift towards mandatory solar panels on new builds.

Mortgage Rate & Criteria Changes

Clydesdale Bank increased by up to 0.25% across selected residential, exclusive, remortgage, and professional products; revised buy-to-let affordability to include personal income; expanded direct underwriter access and lowered large loan service threshold to £500,000.
Accord Mortgages increased their maximum mortgage size by up to £1.6m and extended 95% LTV lending to new-build properties.
Nationwide reduced rates by up to 0.12% across selected 2-, 3-, and 5-year fixed rate products for new and existing customers.
Pepper Money launched a new HMO mortgage product for landlords and limited companies, offering up to 75% LTV on licensed properties with EPC ratings of A to C.
Metro Bank launched an 85% LTV commercial mortgage for loans up to £5m, available to businesses in England and Wales with at least two years’ trading history.
Mansfield Building Society expanded its expat buy-to-let criteria to include applicants residing in EU member states, covering standard, consumer, and holiday let mortgages.
Skipton Building Society enhanced lending criteria by lowering income thresholds and increasing LTIs, while calling for the Bank of England to raise the 15% loan-to-income cap to 20%.
LiveMore increased LTV limits on its lifetime mortgage range, raising maximums to 51.00% at age 80, 41.00% at age 70, and 24.00% at age 55 to enhance flexibility for later life borrowers.

Mortgage Lending Fell Sharply as Consumer Credit Increased in April

Net borrowing of mortgage debt dropped significantly in April by £13.7bn to a negative £0.8bn, reversing the £9.6bn rise in March. Mortgage approvals for house purchases declined for a third consecutive month, falling by 3,100 to 60,500, while remortgaging approvals increased slightly by 1,600 to 35,300. Meanwhile, consumer credit borrowing rose to £1.6bn, driven by a doubling in credit card lending to £0.8bn. Money and Credit – April 2025

Mortgage Lending Surged Ahead of Stamp Duty Changes in Q1 2025

UK Finance (Household Finance Review – Q1 2025) reported a substantial rise in mortgage lending in Q1 2025, driven by buyers accelerating purchases before April’s Stamp Duty changes. First-time buyer completions rose 62% year-on-year to 107,000, while homemover completions increased by 74% to 94,450. March recorded the highest activity spike, with FTB completions up 113% and homemovers up 140% compared to the same month in 2024.

UK Finance Urges National Strategy to Boost Green Home Improvements

UK Finance has called for a coordinated national approach to increase the uptake of energy-efficient home upgrades in its latest report, Unlocking Demand for Green Home Finance. The report identified high upfront costs and limited understanding of cost savings as major barriers to consumer adoption, particularly for technologies like heat pumps. It recommended nine key actions, including public awareness campaigns, financial incentives, and policy reforms, to be included in the Government’s upcoming Warm Homes Plan. Greening Homes, Creating Growth: Unlocking demand for green home finance

FCA Leads Global Crackdown on Illegal Finfluencers

The FCA has spearheaded a global enforcement effort against illegal financial promotions by unauthorised social media influencers. As part of a joint week of action with regulators from six countries, the UK saw three arrests, 50 warning alerts, and over 650 takedown requests for unauthorised online content. The move aims to protect consumers from misleading financial advice and bring greater accountability to digital promotion of financial products.

FCA Concludes Consultation on Mortgage Rule Simplification Amid Caution Over Vulnerable Borrowers

The Financial Conduct Authority has closed its consultation on proposals to simplify mortgage rules, aiming to ease switching, reduce borrowing terms, and streamline lender interactions. While the reforms are designed to cut unnecessary complexity and improve outcomes for consumers, industry experts have warned against overlooking the needs of vulnerable borrowers. They emphasised that any simplification must be matched with clear communication and inclusive systems to ensure all customers are protected and supported.

Agreed Property Sales Reached Highest May Level Since 2021

According to Rightmove, May 2025 saw the highest level of agreed property sales for any May since 2021, and the busiest of any month since March 2022. Sales were up 6% year-on-year across Great Britain, with regional hotspots like Heywood and Pudsey seeing rises of 88% and 85% respectively. In London, Barnet and Kingston upon Thames led the surge, suggesting affordability remains a key driver in market activity. Rightmove – House prices hit new record in May

Average House Prices Dip Slightly in May as Market Shows Stability

Halifax reported a 0.4% monthly drop in average UK house prices in May, bringing the typical property value to £296,648. Annual price growth slowed to 2.5%, but overall prices have remained relatively stable through 2025, despite economic uncertainty and the end of Stamp Duty concessions. Northern Ireland led regional growth at 8.6%, while London continued to lag with just a 1.2% annual increase. Halifax House Price Index – May 2025

Mortgage Search Volumes and Product Availability Hit New Highs in May

Mortgage activity grew strongly in May, with Twenty7tec reporting a 12.3% monthly rise in search volumes and record product availability exceeding 25,000 options. Remortgaging surged 23.1% year-on-year, while first-time buyer activity also increased, with nearly half of searches in this category for 90%+ LTV products. Despite this growth, buy-to-let purchase searches continued to decline, dropping 11.7% year-on-year to one of their lowest market shares on record.

Protection Market Sees 4% Growth in New Business in Q1 2025

iPipeline reported a 4% rise in protection new business in Q1 2025, with Annual Premium Equivalent (APE) increasing by 17% year-on-year. This growth was driven largely by a 77% rise in “other” cover types and a 92% increase in underwritten Whole of Life sales, likely linked to Inheritance Tax planning. Adviser sentiment also improved, with growing confidence in regulations and long-term commitment to the protection market.

Solar Panels to Become Mandatory on Most New Homes Under Future Homes Standard

The UK Government has confirmed that solar panels will be required on the majority of new homes under the upcoming Future Homes Standard, to be published in autumn. This policy shift aims to lower energy bills by an estimated £530 per year and promote cleaner energy, alongside mandating low-carbon heating systems and improved energy efficiency. Flexibility will apply for homes affected by shading, with the broader strategy designed to support national climate goals and energy resilience.

Swap Rates Hold Steady After Recent Gains

Swap rates remained relatively unchanged over the past week, with the 2-year rate slipping slightly by 0.004% to 3.780% and the 5-year rate decreasing by 0.005% to 3.789%. Despite this marginal weekly dip, both rates have climbed since last month—up 0.200% and 0.187% respectively. Compared to a year ago, the 2-year rate is down by 0.784%, while the 5-year rate has dropped more modestly by 0.206%.

Swap Rate	05-Jun-25	06-May-25	06-Jun-24
2 Year	3.780%	3.580%	4.564%
5 Year	3.789%	3.602%	3.995%

Updated 6^th June 2025

Mortgage News – 2nd June 2025

While some lenders made rate changes last week, the more notable developments came from the launch of new products and service enhancements designed to meet changing borrower needs.

Rural property prices continued to outperform urban areas over the past five years, while overall household costs rose 2.6% annually, driven primarily by rental inflation. Despite a sharp drop in property transactions in April following the end of the Stamp Duty deadline, May recorded the busiest month for house sales since 2021, and swap rates dipped slightly despite rising over the month.

Mortgage Rate & Criteria Changes

Barclays increased rates across a broad range of residential, remortgage, Green Home, and Mortgage Guarantee Scheme products by up to 0.10%, while reducing one 85% LTV 2-year tracker rate from 5.01% to 4.98%.
Principality adjusted rates across its mortgage range, with reductions of up to 0.20% on high LTV residential, cashback, JBSP, and holiday let products, and increases of up to 0.40% on lower LTV residential, JBSP, buy-to-let, shared ownership, Help to Buy, and tracker products.
Family Building Society reduced mortgage rates by up to 0.25% across owner occupier, buy-to-let, and joint borrower sole proprietor products.
MPowered Mortgages reduced selected 3-year fixed rates for purchase and remortgage customers, with new rates starting from 3.93% for 65% LTV and 4.25% for 80% LTV.
Darlington Building Society launched new 2-year fixed buy-to-let products starting from 4.54%, including remortgage, expat, holiday let, and retention options with flat fees.
Precise Mortgages reduced residential rates and expanded its £0 fee options, with 2-year fixed rates starting from 4.89%, 3-year fixed from 4.99%, and 5-year fixed from 4.74%.
Keystone reintroduced 7% fee 5-year fixed products at 65% and 75% LTV to improve landlord affordability and borrowing capacity.
Aldermore enhanced its SME lending by expanding auto-decisioning to include non-limited businesses and increasing soft asset automation up to £100,000, enabling instant decisions within 10 seconds.

Rural Areas Saw Stronger House Price Growth Than Urban Counterparts Over Past Five Years

House prices in predominantly rural areas rose by 23% between December 2019 and December 2024, outpacing the 18% rise in urban locations, according to Nationwide – Rural Growth 2025. Areas classed as ‘urban with significant rural’ followed closely with a 22% increase, while rural terraced and semi-detached homes saw the highest growth at 25%. The trend was influenced initially by the pandemic and has continued, with demand from older buyers and a desire for space remaining strong.

ONS Reports 2.6% Rise in Household Costs Over the Past Year

UK household costs increased by 2.6% in the year to March 2025, down from 2.9% in December 2024, according to the latest ONS data. Private renters faced the highest inflation at 3.6%, while owner occupiers without a mortgage saw the lowest rise at 1.8%. Inflation was also higher for non-retired households and those with children, though overall rates eased slightly across most groups.

House Sales Hit Highest Level Since 2021 as Market Activity Surges

House sales in May reached their highest level in four years, driven by improved mortgage deals and relaxed affordability checks, according to Zoopla’s House Price Index: May 2025. Sales agreed were up 6% year-on-year, with 13% more homes listed for sale compared to 2023. Northern regions like the North West and cities such as Belfast and Blackburn saw the strongest price growth, while the South reported a larger increase in supply.

Property Transactions Drop Sharply in April Following Stamp Duty Deadline

HMRC data revealed a steep decline in property transactions in April 2025, following a surge in March due to the Stamp Duty deadline. Residential transactions dropped 64% month-on-month and 28% year-on-year, with non-residential deals also falling by 16% from March. Industry experts noted this was an expected short-term adjustment after March’s rush, with underlying confidence supported by lower interest rates, rising listings, and ongoing lender competition. HMRC – UK monthly property transactions commentary

Nationwide Achieves Record Growth Following Virgin Money Acquisition

Nationwide reported a record statutory profit of over £2.3bn for the year ending March 2025, driven by increased mortgage lending and its acquisition of Virgin Money. The group’s mortgage balances rose to £275.9bn, with £15.5bn in net lending and support for 120,000 first-time buyers. Deposit balances also saw strong growth, rising to £260.7bn, while member value reached £2.8bn, including £1bn in direct rewards.

Government Sets Out Tougher Rules and Major Reforms to Accelerate Housebuilding

The Government has unveiled a comprehensive package of planning reforms and regulatory changes aimed at speeding up housebuilding and supporting small and medium-sized developers. New rules will require developers to commit to build timeframes before gaining planning permission, with annual progress reports and penalties of thousands of pounds per unbuilt home for delays. Alongside this, councils will gain powers to buy up stalled sites and restrict future planning permissions for land banking, while smaller builders will benefit from simplified planning rules, faster approvals, and improved access to funding and public land.

Majority of Landlords Could Miss Out on Cheaper Green Mortgage Rates

Paragon Bank research revealed that 57% of landlords who invested in energy efficiency upgrades had not obtained a new EPC assessment, potentially missing out on green mortgage deals. With many lenders offering lower rates for properties rated EPC A to C, landlords may be losing out due to unupdated certification. Nearly half of landlord portfolios still fall below the proposed EPC C standard, raising concerns about the feasibility of future regulatory targets.

Swap Rates Edge Down Slightly Despite Monthly Gains

Swap rates dipped slightly over the past week, with the 2-year rate falling to 3.784%, a 0.026% drop from last week’s 3.810%. The 5-year swap rate also declined, down 0.059% to 3.794% from 3.853%. Despite these weekly decreases, both rates remain over 0.21% higher than a month ago, while still notably lower than the same time last year.