London | January 30, 2026 Mortgage approvals in the UK fell sharply in December, reaching their lowest level since June 2024, according to new figures released Friday, raising concerns about the health of the housing market.
Economists said the decline reflects a combination of high interest rates, cost-of-living pressures, and weak consumer confidence.
First-time buyers appear to be most affected, with estate agents reporting fewer viewings and longer completion times.
The Bank of England has held interest rates steady in recent months, but borrowing costs remain elevated compared to pre-pandemic levels. Analysts said relief may not come quickly enough for households struggling to enter the market.
Construction groups warned that prolonged weakness could slow new housing projects, compounding existing supply shortages.
Government ministers said they are monitoring the situation closely and pointed to existing support schemes, though critics argue current measures are insufficient.
The slowdown adds to broader economic challenges facing the UK as it enters 2026, with growth remaining fragile.
