UK remortgaging hits two-year high – What it means for the property sector
Remortgaging activity in the UK surged in June, reaching its highest level since October 2022, according to the latest Bank of England figures. A total of 41,800 homeowners switched mortgage deals—up from 41,600 in May—as borrowers sought to secure better rates amid ongoing economic uncertainty.
Industry experts suggest the spike is driven by the expiry of fixed-rate deals taken out during the pandemic and the fallout from the 2022 mini-budget. With interest rates stabilising, many homeowners are reassessing their financial options, even if it means switching lenders.
Loans for house purchases also rose slightly to 64,000, hinting at a modest recovery in buyer confidence. Analysts believe the market could gain further momentum in the autumn, especially if wage growth continues and the Bank of England signals a shift towards rate cuts.
Implications for the industry:
- Housebuilders may benefit from increased consumer confidence and a potential uptick in demand for new homes, particularly energy-efficient builds.
- Estate agents should prepare for more market activity as remortgaging often precedes moves or investment decisions.
- Property developers could see renewed interest in upcoming projects, especially if borrowing costs ease further.
The remortgaging trend signals a more financially engaged homeowner base—an encouraging sign for the wider property market.
40,000 new homes planned on railway brownfield land – a boost for first-time buyers and the property sector
The UK Government has launched a new property company, Platform4, to unlock surplus railway land for housing, with the aim of delivering up to 40,000 new homes over the next decade. The initiative is part of a broader “brownfield-first” strategy to tackle the housing crisis and support first-time buyers priced out of the market.
Platform4 will consolidate responsibilities previously split between Network Rail and London and Continental Railways, aiming to streamline development and reduce inefficiencies. Profits will be reinvested into the rail network, while the developments are expected to generate an additional £227 million through faster and larger-scale delivery.
Initial regeneration sites include Newcastle’s Forth Yards, Manchester Mayfield, Cambridge, and Nottingham—together offering thousands of new homes in key urban areas.
What this means for the industry:
- Housebuilders stand to benefit from a pipeline of well-located, government-backed sites, reducing land acquisition barriers and speeding up planning.
- Estate agents may see increased activity in emerging neighbourhoods, particularly from first-time buyers drawn to more affordable, centrally located homes.
- Property developers will find new opportunities in mixed-use regeneration, especially near transport hubs—ideal for sustainable, high-density schemes.
This move signals a renewed focus on urban regeneration and housing delivery, with brownfield land playing a central role in meeting long-term housing targets.
UK house prices see modest growth amid record supply and strong demand
The UK housing market remained steady in July 2025, with house prices rising modestly by 1.4% year-on-year, according to Zoopla’s latest House Price Index. The average UK home now stands at £268,400, up £3,690 from the previous year.
Sales are being agreed at the fastest rate in four years, driven by a 14% increase in homes for sale compared to last year. This surge in supply is giving buyers more choice and helping to keep price growth in check. However, affordability remains a key concern, especially in higher-value markets where prices are softening.
Flats and maisonettes saw a slight annual decline of 0.8%, while semi-detached homes led the market with a 2.5% rise. The average time to sell remains steady at 45 days, matching last year’s pace.
Implications for the property sector:
- Housebuilders may face pricing pressure in premium markets but can capitalise on strong demand in more affordable regions. The focus should remain on competitively priced, energy-efficient homes.
- Estate agents are likely to benefit from increased transaction volumes, but accurate pricing remains critical to securing sales.
- Property developers should monitor regional trends closely, as affordability constraints and high supply levels could influence project viability and pricing strategies.
With demand still outpacing last year and more stock entering the market, the rest of 2025 could offer a window of opportunity—particularly for well-positioned, competitively priced developments.
