Mortgage market update | November 2025

As we approach the end of the year, the mortgage and housing market continues to balance mixed messages. There’s talk of renewed confidence, more lenders cutting rates, and government announcements to get housebuilding moving again. Yet activity levels remain steady rather than strong, with many buyers still waiting to see what happens next.

Home Sales Slow but Market Holds Steady

Recent data shows the first annual fall in new home sales for more than two years, as some buyers hold off ahead of the budget and year-end. Activity has eased, but demand is still there in the background. Sellers who price sensibly are continuing to secure good results.

It feels less like a downturn and more like a short pause as buyers and sellers take stock. Once confidence returns, many of those who have been waiting will likely re-enter the market quickly.

Lenders Begin Cutting Rates Again

Several major lenders, including Barclays, HSBC and Santander, have reduced rates this month as inflation continues to edge lower.

While cuts have been modest, they mark a positive shift in tone. Five-year fixed rates are once again starting to dip below 4.5%, and there is growing competition between lenders to attract new business.

It’s an encouraging sign that affordability could gradually improve, giving clients more room to plan with confidence heading into 2026.

Government Plans to Boost Housebuilding in London

The government has announced a package of “emergency measures” aimed at tackling London’s housebuilding challenges. These include fast-tracked planning for developments that include affordable homes, temporary levy relief for developers, and a new investment fund to kick-start projects.

It all sounds positive, but delivery will be key. After years of ambitious targets, what the market really needs is for these commitments to translate into new homes being built. If progress follows, it could help to ease supply pressure and open up more opportunities for buyers and investors.

Stamp Duty Pledge from the Opposition

There’s been plenty of discussion this month about a proposed stamp duty overhaul, following a pledge from the opposition to make permanent cuts if elected.

It has sparked debate across the market, but any potential change would be several years away and depends on the outcome of the next general election. For now, the current thresholds remain unchanged, and there is no immediate impact for buyers or homeowners.

It’s a headline that has caught attention, but one to watch rather than act on at this stage.

Risk warnings

Your home may be repossessed if you do not keep up repayments on your mortgage