18 September 2026
If you are covering the latest ONS release covering mortgage statistics in the UK, please see the following comment from Ian Futcher, financial planner at Quilter:
“While the recovery in mortgage activity during 2025 is encouraging, perhaps the most notable trend is how the shape of the market has changed. First-time buyers accounted for 52.8% of all mortgage sales in 2025, compared with just 33.8% in 2006, highlighting how much more reliant the housing market has become on new entrants. The housing ladder is still attracting new climbers, but far fewer people are moving up the rungs once they're on it. Activity among existing homeowners remains well below historic levels, suggesting many people are choosing to stay put for longer rather than move home. Factors such as higher moving costs, including stamp duty, are likely playing a role.
“First-time buyers are also having to stretch further to get onto the property ladder. The median loan-to-value ratio for first-time buyers reached 85.6% in 2025, its highest level since before the financial crisis, indicating buyers are borrowing a larger proportion of a property's value and relying on smaller deposits. The deposit hurdle remains high, so many buyers are compensating by borrowing more of the purchase price.
“However, it is important to remember that these figures reflect conditions in 2025, when inflation was easing and mortgage affordability was gradually improving. The environment in 2026 has been more uncertain, with geopolitical tensions creating volatility in financial markets and mortgage pricing. While the underlying desire to buy a home remains strong, many households are likely to remain cautious about major financial commitments until there is greater confidence over the direction of interest rates and the wider economic outlook.”
