UK Housing Market Report 2026: Now Is the Time to Get Mortgage Ready with Independent Advice, Why?

Written by Sam Noble,  Mortgage Expert, The Mortgage Broker

Book a free appointment, here.

The UK housing marketing 2026 has kicked off with renewed momentum and cautious optimism, offering real opportunities for home buyers, but also fresh challenges. For estate agents, understanding these trends and partnering with an expert mortgage broker isn’t just useful, it’s critical to helping and guiding clients to convert interest into completed sales. Speed of understanding one’s mortgage position, whilst obtaining a mortgage in principle, makes buyers mortgage ready and more competitive in the house buying process.

In this report we break down the latest market insights, what they mean for buyers and agents, and why independent mortgage advice is more important than ever.

A Record January House Price Bounce Demonstrates Market Confidence

Rightmove’s January 2026 House Price Index revealed a 2.8% monthly increase in asking prices, the largest January rise in over two decades. The average asking price nationally is now around £368,000, signalling that buyer and seller confidence is returning after the uncertainty of late 2025.

This rebound isn’t just about numbers. It reflects certain patterns and backs up what we are seeing at The Mortgage Broker.  The market is seeing:

• More buyers returning to the market
• Homemovers reacting positively to improved rate conditions
• Growth in listings and enquiries early in the year

For estate agents, this of course helps to create momentum and if buyers are genuinely mortgage qualified and ready to move forward, it makes the whole process far more smoorther.

 

Market Activity Is Up, But Supply Remains High

Alongside rising prices, the number of properties available for sale is at its highest level for this time of year since 2014, giving buyers greater choice. These positive signs are therefore giving:

1. Buyers have more choice, but may be unsure of affordability, and of course, 
2. Over pricing remains a risk for sellers in a growing and competitive market with property numbers higher.

Agents face the dual business challenge of managing expectations and keeping clients motivated. That’s where solid mortgage ready preparation, guided by independent advice, becomes a market differentiator.

Interest Rates and Mortgage Affordability

Mortgage rates have eased from their mid 2023 highs, with average two year fixed rates now significantly lower than at the height of market stress. Since the Bank of England has reflect positive moods in their latest interest rate decrease, The Mortgage Broker are seeing a shift in rates across certain mortgage lenders. This helps improve mortgage options available for buyers, and could well be the difference between getting and not getting the house they are trying to buy.

However, whilst improved affordability is boosting confidence, it is still very important to have a mortgage assessment and understand what the right mortgage term, rate and options are, as:

• Buyers often overestimate what they can afford.
• Lenders remain rigorous on income, debt and stress testing.
• Product availability varies significantly between borrower types.

Independent mortgage advisers help buyers navigate this complexity, giving agents confidence that enquiries are realistic, funded and ready to proceed. There is also an array of free digital tools to assess your own affordability, or simply speak to an adviser and get a Free Mortgage Assessment. 

What Experts are Forecasting for 2026

Long term forecasts point to continued modest growth in house prices, with Rightmove predicting around 2% price growth across 2026 as affordability improves overall. If this is compounded by a potential further Bank of England rate decrease, then we are really starting to see a positive market grow in force. However, this doesn’t mean you should wait to buy, as this can pair with the increasing house prices, and mortgages can be flexible depending on the right situation.

Within the mortgage industry in particular, the forecasts are suggesting there will be an overall mortgage lending growth over the next 12 months. UK Finance is forecasting a modest growth of around 4% taking the market to £300 billion. 

As current homeowers see their mortgage deals mature, remortgaging and product transfers remain strong as people try and switch to a lower rate. Many are on higher rates that they were put on during peak interest rate hikes, but there are still some that remain on prepandemic low rates that will unfortunately see a hike in their monthly outgoings when they have to remortgage this year.

Intermediaries (independent advisers) are expected to remain central to mortgage delivery, accounting for the majority of gross lending and over 90% of mortgage borrowing is successfully approved via a Mortgage Broker.

Get Mortgage Ready with a Mortgage in Principle

These trends highlight a key reality: the market isn’t flat, it’s evolving. Buyers need informed guidance to translate intent into offers, and agents need buyers who are genuinely mortgage ready with a mortgage in principle certificate confirming their ability to purchase the house they are making an offer on.

Get Started

In a year defined by adjustment rather than acceleration, clarity, preparation and expert guidance will determine who progresses and who stalls.

Why Trusted Independent Mortgage Advice Matters For Buyers More Than Ever

Often Estate Agents have in house mortgage advisers, or recommend a mortgage broker. Our advice is to always get independent mortgage advice and ensure the broker you are using has access to a wide UK mortgage lender panel. At The Mortgage Broker you can search & compare over 130 Lenders which equates to over 25,000 mortgage deals. However, there are many good mortgage advisers in the industry, and plenty who can provide independent advice. Our recommendation is to compare, and to understand your position fully. It can take as little as 15 minutes to get an understanding of what your best available options are for your circumstances.

Here are a few high level reasons to get mortgage ready:

Qualified Buyers Convert Faster

Online affordability tools and pre approvals can be confusing and misleading, with a limited number of live rates and lenders accessible in the answers it provides.  Independent advisers perform full checks on:

• income and expenditure,
• credit files,
• deposit verification, and
• Realistic and viable lender options.

This means:

• Viewings turn into offers.
• Offers are backed by genuine affordability and mortgageable buyers.
• Transactions move smoothly.

This makes buyers understand with clarity their mortgage position, and poorly qualified buyers cost agents time and risk deals falling through.  Independent advice reduces that risk. 

Accurate Rate and Product Matching

Lenders have hundreds of mortgage products with varying criteria. A buyer who is eligible for one product with a lender may be rejected by another lender despite higher rates elsewhere.

An experienced adviser navigates these:

• Making sure buyers get appropriate products, not just available ones.
• Avoiding surprises at underwriting.
• Increasing the likelihood of a formal mortgage offer

Market Complexity Requires Expert Insight

Whether it’s:

• Increased listings,
• regional price differences,
• shifting affordability,
• or longer underwriting times,

Estate agents benefit by recommending an independent broker that understands how mortgage conditions affect buyer behaviour, and translates that into actionable guidance.

Estate Agents Can Partner with The Mortgage Broker and Get a Marketplace Advantage

By partnering with us, estate agents will:

• Increased offer to completion conversion
• Improve viewing to offer conversion
• Deliver a better consistent experience for buyers
• Strengthen their competitive positioning

Summary: A Positive Market, But Prepared Buyers Win

The start of 2026 shows a housing market on the rise, but not without complexity. Prices are increasing, supply is strong, and buyer activity is growing. Yet confidence and completion rates depend on preparation and certainty.

Independent mortgage advice ensures buyers are mortgage ready, and agents convert more leads into successful sales.

If you’re an estate agent looking to capitalise on the current market, partnering with The Mortgage Broker isn’t just good practice, it’s a strategic advantage.

 

Call Us 0800 0320 316

Or Book a Free Remortgage Appointment

 

You can request a free, no-obligation mortgage review with a qualified adviser now.

No mortgage offer, no broker fee.

Author: Sam Noble, Mortgage Expert