UKEconomy

The UK mortgage market is demonstrating notable resilience in the face of higher borrowing costs and a more uncertain global economic backdrop. The latest data shows that mortgage approvals, one of the clearest forward indicators of housing demand, reached 63,531 in March. This represents a 1.3% increase on February’s total and marks the highest monthly figure recorded since November 2025, signalling a quiet but meaningful strengthening of buyer activity as the spring market progresses.

What is particularly striking about this performance is the wider context in which it has been achieved. Mortgage rates have been pushed higher by global uncertainty, yet the level of approvals sits just 0.8% below where it stood a year ago. The fact that this gap remains so narrow, despite the headwinds of more expensive borrowing, points to underlying resilience in a market often assumed to react sharply to changes in the interest rate environment.

The picture for new buyer enquiries reinforces this view, with enquiries down only 2% compared with the same period last year. This modest decline suggests that buyers remain engaged rather than in retreat, even if the prevailing mood remains somewhat cautious. Property professionals appear to share this assessment. In a recent poll, 42% reported that buyer confidence is broadly in line with where it stood three months ago, reflecting a sense of stability rather than either exuberance or decline.

Taken together, these figures paint a picture of a mortgage market that is absorbing pressure rather than buckling under it. Approvals are rising, year-on-year comparisons remain largely stable, and confidence is holding its ground as the sector moves further into 2026.