Mortgage affordability pressures persist as buyers maintain caution
Mortgage affordability remains a key challenge for homebuyers despite a more balanced housing market emerging, according to Propertymark’s Housing Insight report for May 2026.
The report found that the Bank of England base rate hold at 3.75% in May provided some stability for borrowers, but affordability pressures continued to influence buyer behaviour.
Propertymark said the market was showing signs of resilience, with stock levels increasing slightly and giving buyers more choice, but households remained cautious as they assessed their ability to meet mortgage costs.
The average number of prospective buyers registering with member branches fell to 64 during May 2026, suggesting demand has softened slightly as affordability remains a deciding factor.
Mortgage commitments rise while advances fall
Mortgage data showed a mixed picture, with gross mortgage advances falling in the first quarter of 2026, while the value of new mortgage commitments increased compared with the previous quarter.
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The report also highlighted ongoing pressure on household finances, with 32% of adults reporting that they found paying their rent or mortgage either ‘very or somewhat difficult’ between 6 and 31 May 2026.
Mortgage arrears were broadly stable, with the number of loan accounts in arrears and the amount owed showing little movement in Q4 2025.
However, new possession cases increased slightly during Q1 2026, according to the latest figures available in the report.
Buyers retain negotiating power
Affordability concerns are also reflected in pricing and transaction trends, with most properties continuing to sell below asking price during May 2026.
The report found that 84% of member agents said properties achieved less than the asking price, while only 11% reported homes selling at the asking price.
The time taken for sales to progress also remained extended, with around 40.4% of agents reporting that most agreed sales took more than 17 weeks to move from acceptance to exchange.
Nathan Emerson, CEO of Propertymark, said: “May’s figures demonstrate a housing market that continues to show resilience despite ongoing economic and geopolitical uncertainty. While we have seen a slight dip in prospective buyer registrations, stock levels have edged upwards, giving consumers more choice and helping to create a more balanced sales market.”
