Mortgages and house prices move together on this page. The pattern of 2026 so far: lenders trimming rates again and again while prices drift, with UK values flatlining in May, dipping despite global jitters, and finally falling for the first time this year as the north-south divide widens. Behind it all sits the Bank of England, expected to hold rates at 3.75% as inflation risks resurface and the oil shock derails hopes of summer cuts. The page follows how those borrowing costs bite on households and the wider market.
Economists are near-unanimous that the Monetary Policy Committee will leave borrowing costs unchanged on Thursday, with Middle East tensions and a looming energy bill rise tempering hopes of further cuts this year.
Economists are virtually unanimous that the Monetary Policy Committee will leave borrowing costs unchanged on Thursday, with a Middle East oil-price spike forcing rate-setters into a holding pattern just as households had begun to hope for relief.
Halifax says the typical home now costs just under £299,000 with annual growth of 0.5%, but the headline masks a stark split between a buoyant north and a weakening south.
NatWest, Barclays, Santander and others have trimmed fixed deals in a fresh wave of reductions, offering relief to borrowers even as the housing market cools.
Property values edged lower last month as Middle East uncertainty sapped momentum, even as a string of major lenders cut selected fixed deals in a battle for borrowers.
A surprise monthly drop reported by Nationwide has confirmed a cooling property market, with prices sliding in the south while northern regions and the devolved nations continue to climb.
The average home cost just under £299,000 in May, with Halifax reporting a slight monthly dip while annual growth ticked up to 0.5 per cent.