Hopes for a busier housing market in the coming months have been boosted by mortgage approval figures from the Bank of England.

The latest figures from the Bank of England show there were 58,200 mortgage approvals for house purchase in June 2026.

The figure is up from 56,565 in May but remains below the six month average of around 61,435.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “The stop-start war in Iran is continuing to have a knock-on effect on mortgage rates and the cost of living compounded by recent domestic political upheaval.

“Therefore, it may be a little surprising that the always reliable indicator of future market activity – mortgage approval numbers – have bounced back, but not to us. On the ground, we’re not seeing a significant change in sentiment. On the contrary, there’s a grim determination among most to stay the course despite some serious price negotiations in many cases.

“”However, decision-making has been delayed as genuine buyers take advantage of their considerable bargaining power and ample choice in most price ranges before making their moves.”

Jason Tebb, President of OnTheMarket, says: “Approvals for house purchases, a useful measure of market activity as they indicate future borrowing, picked up in June although they remain below the six-month average as ongoing political and economic uncertainty has an impact on buyer and seller decision-making.

“While the appointment of Andy Burnham perhaps adds to that uncertainty, it does give us a Prime Minister for whom housing is near the top of the agenda rather than at the bottom. Whether that turns into homes built and problems solved, or just another bold set of promises, is the question that will define his time at Number 10.

“With the effective interest rate on newly-drawn mortgages increasing to 4.35% in May, the impact of higher borrowing costs is also making itself felt. The Bank of England’s decision to hold base rate steady at recent meetings will help steady concerns, particularly if it continues with this approach this month.”

Nathan Emerson, Chief Executive at Propertymark, says: “The increase in net mortgage approvals for house purchases increased June suggests that buyers responded positively to a period of relative economic stability. However, approvals remained below the average recorded over the previous six months, indicating that while confidence may be improving, activity has yet to fully recover.

“A consistent Bank of England base rate, competitive mortgage products, easing inflation and a temporary reduction in geopolitical tensions are all likely to have supported buyer confidence during the month.

“As inflation continues to ease, households should benefit from greater financial certainty, making it easier for many prospective buyers to plan ahead, build savings for a deposit and take advantage of more competitive borrowing costs.

“However, there remain headwinds. Inflation is still above the Bank of England’s 2% target ahead of this Thursday’s interest rate decision, while higher household costs, including increased energy prices from 1 July, continue to place pressure on household finances.

“Ongoing uncertainty in the Middle East also has the potential to affect global energy markets and inflationary pressures, meaning affordability will remain a key challenge for many aspiring homeowners.”

Richard Donnell, Executive Director at Zoopla, adds: “Fewer housing sales being agreed means less demand for mortgages which explains the 10% decline in mortgage approvals on last year. Average mortgage rates started the year at 4% and are currently around 4.75% adding more then £1,500 a year to the cost of buying an average priced home.

“Together with the political uncertainty of a new Prime Minister and the distraction of the World Cup, demand to buy homes has slowed. Buyers have plenty of choice of homes to buy and we expect housing sales to end the year 6-8% lower than 2025.”