The UK’s housing and mortgage markets are forecast to continue their growth through 2026 and 2027, according to the Intermediary Mortgage Lenders Association (IMLA).
The body suggested that rising lending volumes supported by falling interest rates, improving affordability and easing mortgage regulations will all boost market growth.
In its latest report, The new ‘normal’ – prospects for 2026 and 2027, IMLA has forecast that gross mortgage lending will increase to £320bn in 2026, rising a further 9% to £350bn in 2027, up from an estimated £288bn in 2025.
House purchase lending is expected to be the main driver of this growth, reaching £205bn in 2026 and £225bn in 2027, while remortgaging is forecast to rise to £103bn and £110bn, respectively, as interest rates fall and affordability improves.
Executive director of IMLA, Kate Davies, said: “The housing and mortgage markets continue to play a vital role in supporting the wider UK economy, and our forecasts show that they are set to remain a source of resilience and growth through 2026 and 2027.
“Falling interest rates, rising transaction levels and a recovering buy-to-let market all point to a more positive outlook for lending activity.”
IMLA is also expecting the recovery in the buy-to-let (BTL) market to continue. According to the report, gross BTL lending is forecast to rise from an estimated £39bn in 2025 to £44bn in 2026 and £48bn in 2027, supported by rising rental yields and increased market churn exacerbated by the Renters Rights Act.
Despite ongoing market and regulatory change, IMLA also stated that intermediaries will remain at the heart of mortgage distribution. The association has forecast that around 87% of regulated mortgage lending will continue to be conducted via the broker channel across 2026 and 2027.
“As the market grows and becomes more complex, the importance of intermediary advice is greater than ever,” Davies added.
“Intermediaries play a crucial role in helping borrowers and landlords navigate affordability, regulation and product choice, while supporting good outcomes across both the owner-occupied and BTL sectors.”
Latest News
-
Inflation falls to lowest rate since March
-
Annual house price growth dips to 1.7% – ONS
-
IMLA forecasts sustained growth for mortgage market
-
Majority of intermediaries see Govt policy as biggest risk to mortgage market
-
Firms mustn’t neglect vulnerability when offering targeted support – MorganAsh
-
Integrity365 acquires Brooks Wealth Management
Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget
The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.
NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?
Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories