As 2025 draws to a close, the UK housing and mortgage markets are ending the year on a more optimistic note. Following three Bank of England base rate cuts and a rise in competitive mortgage products, confidence has gradually returned among buyers and lenders alike. Reflecting on the year and the outlook for 2026, Mary-Lou Press, President of NAEA Propertymark, highlights the progress made so far and the opportunities that may lie ahead for homeowners and first-time buyers.
“As 2025 comes to its conclusion, we have seen steady progress across the year in many areas. We have witnessed three base rate cuts, all of which have all helped enhance consumer confidence and influenced more competitive mortgage products from many lenders.
“We have also seen lenders turn their attention to helping first-time buyers with more specialist products, and a similar approach taken regarding later-life lending as well.
“As we head into 2026, it will not be without challenges. However, many economists are hoping for further base rate cuts into the new year.
“For many people with fixed-rate mortgages that may be coming to an end soon, it can represent a brilliant opportunity for people to scan the mortgage market and move forwards with a more completive or suitable deal, and potentially save significant sums of money each month.”