Year-end market dip

Mortgage approvals to home buyers drop to lowest level in year-and-a-half

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The number of mortgage approvals made to home buyers fell to its lowest level in a year-and-a-half in December, according to Bank of England figures.

Some 61,013 mortgage approvals for house purchase were recorded in December 2025, which was down from 64,072 the previous month, and the lowest level since 60,920 approvals in June 2024.

Finance and property experts said they expect to see momentum rebuilding in the months ahead, now that uncertainties around last year's autumn Budget are out of the way.

Thomas Pugh, chief economist at audit, tax and consulting firm RSM UK said: "The drop in mortgage approvals to 61,013 is consistent with weak momentum in the housing market in (the fourth quarter of 2025), which is unsurprising given the uncertainty generated by the Budget.