It was a busy summer of news for the housing market – here’s what you need to know. In August, the Bank of England (BoE) reduced Bank Rate from 4.25% to 4%. This is the lowest level in two years and the fifth cut since August 2024. However, the decision wasn’t straightforward as the Monetary Policy Committee (MPC) required two rounds of votes to reach a majority. Ultimately, five members were in favour of lowering the rate, while four wanted to hold it at 4.25%. Since the rate cut, data shows that UK inflation was 3.8% in July, which is higher than expected and nearly double the BoE’s 2% target. The Bank believes this rise is temporary, caused by food, energy and other price increases, so expects inflation to fall back in the coming months. Even so, experts predict that this will prompt the MPC to take a more cautious approach to future cuts. Impact on the housing market Changes to Bank Rate directly affect the cost of borrowing. With 900,000 mortgage deals coming to an end in the second half of 2025, many homeowners may now benefit from slightly reduced rates. However, it might not be a drastic change, as Richard Donnell at Zoopla explained, “The price of fixed rate mortgages already factors in the future path of base rates meaning average mortgage rates are likely to remain broadly where they are today.” Affordability slowly improving After housing affordability worsened during the pandemic, it is now steadily improving. This is due to a combination of strong income growth, slower house price growth and easing of mortgage rates. Currently, the average UK home costs about 5.75 times typical income, a significant improvement on 2022’s all-time high of 6.9 and the lowest this ratio has been in over ten years. Along with increased availability of high loan-to-value mortgages, this has made buying more achievable for many borrowers. Modest house price growth House price growth picked up slightly in July with annual growth of 2.4%, up from 2.1% in June. There was a month-on-month rise of 0.6%, taking the value of the average home to £272.664. Although marginal, this uptick is positive as it suggests that the housing market is showing some resilience following the Stamp Duty reforms in April. Market outlook Robert Gardner, Nationwide’s Chief Economist, said, “Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.” He continued, “Providing the broader economic recovery is maintained, housing market activity is likely to continue to strengthen gradually in the quarters ahead.” Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay and early repayment charge to your existing lender if you remortgage. Sources: https://www.nationwide.co.uk/media/hpi/reports/annual-house-price-growth-edges-higher-in-july https://www.bbc.co.uk/news/live/cedvn267z0jt https://www.bbc.co.uk/news/articles/cdd3qm7ly8ro https://www.zoopla.co.uk/discover/property-news/what-do-higher-interest-rates-mean-for-the-housing-market/

Income Protection Awareness Week takes place 22 to 26 September 2025, aiming to highlight the importance of protecting your income from illness or injury. Income protection insurers paid out a total of £204m to policyholders in 2024. Unfortunately, many people still don’t understand the importance of insurance – a recent survey found that only 15% of young homeowners would consider themselves to ‘know a lot’ about income protection. This is concerning as 14% of 18 to 34-year-olds think they would immediately struggle to keep up with mortgage repayments if they were unable to work. Meanwhile, over half (57%) said they would experience financial difficulty after six months of losing their income. The survey respondents were asked how they would cope with a sudden loss of income. Three in ten (29%) said they would try to take on additional work and 23% said they would reduce their savings or pension contributions. But all these options may be at the expense of their emotional or financial wellbeing. Make sure you’re fully insured in Income Protection Awareness Week. Why not review your cover with us now, we’re happy to help. As with all insurance policies, conditions and exclusions will apply. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.abi.org.uk/news/news-articles/2025/7/record-8bn-paid-out-in-vital-protection-claims-during-2024/ https://protectionreporter.co.uk/lifesearch-54-of-18-34-year-old-homeowners-claim-to-have-life-policies-but-majority-dont-know-about-ip.html

Over half (54%) of 18 to 34-year-old homeowners have life insurance, however only 15% of this group understands income protection. A survey has found that 30% of young borrowers have not got any protection insurance in place. It is therefore concerning that 14% believe they would have difficulties keeping up with their mortgage payments as soon as they became unable to work due to injury or illness. Meanwhile, 57% of 18 to 34-year-olds would struggle within six months of losing income. When asked what they would do in the event of illness or injury, 29% of young homeowners said they would attempt to take on additional work, while a quarter (23%) would reduce contributions to their savings or pensions pot. Paula Higgins, CEO at HomeOwners Alliance, commented, “For young homeowners, the stakes are high: many have stretched to afford their property and their financial resilience is often still being built.” No one likes to think about being affected by illness or injury, but going without essential protection could put you and your loved ones in a vulnerable position. Don’t leave it up to chance, talk through your options with us. As with all insurance policies, conditions and exclusions will apply. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://protectionreporter.co.uk/lifesearch-54-of-18-34-year-old-homeowners-claim-to-have-life-policies-but-majority-dont-know-about-ip.html https://www.ftadviser.com/critical-illness/2025/6/2/nearly-a-third-of-young-mortgage-holders-do-not-have-protection/

A new report has found that women have significantly less insurance cover than men. In a survey of 2,000 UK adults, a third (32%) of women said they do not have life insurance, twice the number of men (16%). More than a fifth of female respondents did not think they could afford it, versus just 10% of men who expressed affordability concerns. This disparity may be due to a lack of education, with 29% of women saying they have never been taught about life cover compared with 18% of their male counterparts. Moreover, three in ten (29%) women aren’t sure what support life insurance would provide to their loved ones if they died. The report indicates that many people remain unsure about life insurance; what it is, what it can be used for, its benefits and its role in protection, estate planning and retirement. Talk to us There’s no need to feel ashamed about what you don’t know as it’s never too late to get informed. We’re here to answer any questions you have. With the right cover in place, you could safeguard your family’s future if the worst happened. As with all insurance policies, conditions and exclusions will apply Sources: https://www.actuarialpost.co.uk/article/women-twice-as-likely-to-not-have-life-insurance-as-men-25112.htm https://www.yourmoney.com/insurance/mind-the-life-insurance-gender-gap/ https://www.fca.org.uk/financial-lives/financial-lives-2024

By 2030, more than 104,000 Help to Buy accounts will reach the end of their interest-free period. The Help to Buy scheme ran for ten years, between 2013 and 2023. Buyers of new builds were lent up to 20% (or up to 40% in London) of the property’s value as an equity loan. The loan is interest-free for five years and is repayable when the home is sold. According to a Freedom of Information request, there are already 101,000 Help to Buy accounts that have become interest-bearing. The average monthly interest payment on a Help to Buy loan is approximately £107. If you’re faced with higher monthly repayments, you don’t have to go through it alone. Professional advice can help you take control of your finances. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.yourmoney.com/mortgages/first-time-buyer/exclusive-over-104000-help-to-buy-accounts-set-to-come-to-end-of-interest-free-period-by-2030/

Data shows that remortgage activity hit a 15-month high in May. There were 41,500 remortgage approvals, up 6,200 on April and the highest level since February 2024. There was also a rise in new mortgages for the first time since December, with 63,000 approvals. Meanwhile, gross mortgage lending was £20.4bn in May, £16.9bn higher than the previous month. Jason Tebb, President of OnTheMarket, said that the rise in purchase approvals could suggest that the market is getting “back on track”. He added, “Further rate reductions from the Bank of England would provide more impetus for the market in the second half of the year.” Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage. Sources: https://www.yourmoney.com/mortgages/remortgage-activity-reaches-15-month-high-in-may/

New research has revealed that just 43% of people have enough life insurance, with the so-called ‘squeezed middle’, typically in their 30s and 40s, most at risk of having a lack of protection in place. The shortfall is especially stark among mortgage holders, where only 36% have sufficient cover. Families fare even worse - just 30% of couples with children and only 10% of single parents have adequate protection arranged. This age group often faces the greatest financial pressure, juggling childcare costs, large mortgages and household bills, yet many lack the robust safety nets they need. While most people understand the need to cover their mortgage, fewer consider the cost of raising children if the worst happens. Not all the findings were negative. The study also showed that emergency savings improve with age. By their mid-30s, two-thirds have a financial buffer in place, rising to 70% by their late 40s. Overlooking life insurance altogether could leave you and your family in serious financial trouble. If the worst happens, families suffer not just emotional loss, but also face potential financial hardship too. Having the right protection, to suit your budget, can make all the difference. As with all insurance policies, conditions and exclusions will apply Source: https://www.ftadviser.com/protection-gap/2025/5/7/squeezed-middle-falling-into-protection-gap/

A survey of 2,000 Brits has found that most people are living without essential life insurance. Only 45% of respondents have life cover, which means over half of UK adults risk leaving their loved ones in a precarious financial position in the event of their death. Concerningly, 15% don’t know if they are insured. Adults over 55 are the least likely to have cover, with 36% going uninsured. Meanwhile, 25 to 34-year-olds seem to be the most aware of the benefits of life insurance, as only 5% are not covered. Moreover, 18 to 24-year-olds are the only age group to have seen an increase in policies since 2022, which is promising for Gen Z’s financial future. The East Midlands is the area where the highest percentage of people have no life insurance (32%). On the other hand, Greater London is the most covered area, as only 12% don’t have a policy. The survey highlighted that many Brits do not understand the requirements of life insurance. Nearly three in ten respondents believe you need to have life insurance in place to be accepted for a mortgage. It is not law, but life cover is highly recommended if you are a homeowner. As with all insurance policies, conditions and exclusions will apply. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.uk-lifeinsurance.com/blog/life-insurance-in-the-uk-index-2025/

The housing market seems to be regaining momentum, as sales are being agreed at the fastest rate in four years. The number of sales agreed was up 6% annually in June, which coincided with the stock of new property listings going up by 14%. This indicates that buyers are regaining confidence, with demand rising by 7%. Executive Director at Zoopla, Richard Donnell, commented, “The number of buyers and sellers agreeing home sales continues to increase year-on-year, demonstrating a continued desire of more households to move home in 2025.” Hoping to move by the end of year? Whether you’re upsizing, downsizing, or getting on the property ladder for the first time, we’re here to help with all your mortgage needs. Your home may be repossessed if you do not keep up repayments on your mortgage. Sources: https://www.yourmoney.com/mortgages/agreed-sales-rise-amid-more-housing-supply-and-slower-price-growth/

A new study has found nearly a third of young UK mortgage holders have no protection cover, leaving them financially vulnerable if their income suddenly stops. The research surveyed more than 1,200 homeowners aged 18 to 34, including 500 with mortgages. Among those surveyed, only 15% of young homeowners said they knew a lot about income protection and just one in three had life insurance or critical illness cover. Short-term fixes, long-term risks When asked how they would cope with a sudden loss of income, 14% said they would immediately struggle to meet their mortgage payments if they lost their income. A further 57% said they would face financial difficulty within six months. To make up for the income shortfall, 29% of respondents said they would try to take on extra work. Others would cut savings or pension contributions (23%), apply for government support like Universal Credit (21%), or consider a bank loan (12%). The report warns these are short-term solutions that could lead to greater financial strain later on. The younger generation is particularly exposed to more job uncertainty and cost-of-living pressures, making long-term planning all the more essential. High stakes for first-time buyers Paula Higgins, CEO of HomeOwners Alliance, expressed her concerns, highlighting the specific risks faced by younger buyers, “We need to do more to support young people in staying financially secure, especially as they take on the long-term responsibility of a mortgage. Ensuring they have the tools, knowledge, and support to weather life’s ups and downs is essential to helping them hold onto their homes and build a stable future.” A growing awareness – but not across all products While the findings point to an urgent need for education and better access to protection, there are signs that awareness is starting to improve. Separate research from Swiss Re reveals income protection sales have increased by 18% year-on-year. However, sales of other types of cover, including life insurance and critical illness, have declined. The message is clear - there’s an urgent need to close this awareness gap. That means clearer advice, better signposting and conversations about protection starting earlier – so that young homeowners aren’t left exposed. Don’t wait for a crisis to realise what’s missing. Speak to us today about protection insurance - because securing your income means safeguarding your home, your future and your peace of mind. Your home may be repossessed if you do not keep up repayments on your mortgage. As with all insurance policies, conditions and exclusions will apply Source: https://www.yourmoney.com/mortgages/nearly-a-third-of-young-mortgage-holders-have-no-protection/ https://www.ftadviser.com/critical-illness/2025/6/2/nearly-a-third-of-young-mortgage-holders-do-not-have-protection/

Rural house prices are still rising faster than those in towns and cities, according to Nationwide. While the pandemic-driven rush for countryside homes has eased, demand for space continues to support stronger growth in rural areas. Most home movers over the past five years stayed in similar locations, with 63% moving within the same type of area. Just 9% moved from towns or cities to rural spots, partly balanced by 7% heading the other way. Younger buyers tended to favour urban moves, while older movers, especially those over 55, were more likely to head for the countryside, often in search of more space or a bigger garden. Source: https://www.yourmoney.com/mortgages/rural-house-price-rises-outpace-towns-and-cities/