Housing & Mortgages: Four non-obvious updates shaping the market

Housing news usually focuses on house prices.

But the bigger forces often live in rules, arrears data, lender behaviour, and future supply costs.

1) FCA: plans to reshape the mortgage market

The FCA has set out plans aimed at helping:

• first-time buyers
• the self-employed

and has signalled priorities around how the mortgage market could evolve.

Why it matters:

• Mortgage rules are not just about affordability checks — they set which borrowers are “in scope” for mainstream lending.

2) Arrears trend: Q3 2025 shows improvement (but the level still matters)

UK Finance publishes mortgage arrears and possessions data.

In Q3 2025, the number of homeowner mortgages in arrears of 2.5%+ of the outstanding balance was reported at 84,100, with quarterly declines shown in the release.

Why it matters:

• Arrears levels feed into lender risk appetite and pricing.
• Improving arrears can loosen the market at the margin, but it doesn’t automatically make homes affordable.

3) Mortgage market forecasts for 2026–2027

UK Finance has published a Mortgage Market Forecast document covering expectations for gross lending, transactions, remortgaging patterns, and fixed-rate expiries.

Why it matters:

• Forecasts shape expectations — and expectations shape pricing.

4) Building Safety Levy: start date is on the calendar (October 2026)

The Building Safety Levy (England) Regulations 2025 specify commencement on 1 October 2026.

Why it matters:

• Levies can influence development economics.
• Over time, policy costs can affect supply, which then affects prices and rents.

Sources (accessed December 2025)

• FCA press release: FCA sets out plans to help build mortgage market of the future https://www.fca.org.uk/news/press-releases/fca-sets-out-plans-help-build-mortgage-market-future

• UK Finance: Arrears and possessions (Q3 2025) https://www.ukfinance.org.uk/data-and-research/data/arrears-and-possessions

• UK Finance: Mortgage Market Forecasts (PDF, 2026–2027) https://www.ukfinance.org.uk/system/files/2025-12/Mortgage%20Market%20Forecasts%202026-2027.pdf https://www.ukfinance.org.uk/data-and-research/data/mortgage-market-forecasts

• Legislation: Building Safety Levy (England) Regulations 2025 https://www.legislation.gov.uk/ukdsi/2025/9780348273779

• Government guidance: Building Safety Levy https://www.gov.uk/guidance/building-safety-levy-guidance/section-1-introduction

Disclaimer: This article is for general informational and educational purposes only. It does not constitute financial, investment, tax or legal advice and does not take into account individual circumstances.