UK Housing Strains as 5.68% Mortgages Deepen 30,000 Sales Shortfall
Updated
Updated · Mortgage Professional · Jun 15
UK Housing Strains as 5.68% Mortgages Deepen 30,000 Sales Shortfall
3 articles · Updated · Mortgage Professional · Jun 15
Summary
Average two-year fixed mortgage rates hit 5.68% on June 1, up from 4.83% in early March, leaving UK buyers more cautious and stretching sale timelines.
Q1 completions totaled 269,000—about 30,000 below the five-year quarterly average—while annual house price growth across major indices held near 1.2%, showing demand has softened rather than collapsed.
Sellers are cutting expectations as asking prices lose traction, with agents reporting first-time buyers are especially deterred by borrowing costs, living expenses and plentiful flat supply.
Forecasters have turned more cautious: Savills now sees 2026 price growth at 2%, while Knight Frank has cut its view to 1.5% from 3%.
Needs-based buyers are still keeping transactions moving, but industry calls for stamp duty reform are growing, with 33% of RSM survey respondents ranking it the top market stimulus.