What 2026 could hold for the UK housing market

What 2026 could hold for the UK housing market

Clare Louise Jackson/ShutterstockFor many UK households, 2025 marked the beginning of the end of the mortgage rate shocks of the previous year. And while that did not mean a return to cheap borrowing, the easing of interest rates was clearly visible over the course of the year. The Bank of England’s base rate, a key determinant of mortgage pricing, fell from 4.75% in January 2025 to 3.75% in December. And mortgage rates followed suit. For a typi…

What does 2026 hold for interest rates?

Interest rates play a bigger role in your financial life than many people realise. They influence the home you can afford, the return on your savings, the cost of borrowing, and even the kind of retirement lifestyle you may be able to enjoy. Over the past few years, we’ve seen dramatic swings. During the Covid emergency in 2020, the Bank of England base rate fell to a historic low of 0.1%. By 2023, it had risen sharply to 5.25% in an effort to c…