Mortgage lending growth to slow sharply

UK Finance forecasts a significant slowdown in mortgage lending growth, predicting only a 2% increase to £180bn in 2026. This marks a stark decline from the 22% growth seen this year. Property transactions are expected to fall to just over 1.2m, with repossessions rising by 9% to 9,400. James Tatch, head of analytics at UK Finance, said: "Affordability is now very tight and this is likely to limit borrowing options for potential buyers in 2026." 

Daily Mail (15/12/2025)