The UK housing and mortgage market continues to exhibit resilience in the face of shifting macroeconomic dynamics. While inflationary pressures have moderated, uncertainty around the pace and extent of future Bank of England (BoE) rate cuts persists. Despite these uncertainties, housing finance activity remains robust and, while borrower performance varies, it has generally stabilised across segments.
Following a trough in late 2023, house price growth has accelerated again, partly due to a moderation in mortgage rates. At the same time, rental price growth has eased in most regions, though rents generally remain elevated relative to pre-pandemic levels. In this report, we provide an in-depth analysis of housing finance trends across the UK, including structural headwinds such as the evolving housing affordability challenges and emerging risks within the residential property sector.
Key Takeaways
KBRA expects prime delinquencies to continue to decline and stabilise at low…
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