The Middleman Mortgage Lenders Affiliation (IMLA) expects UK mortgage and housing market exercise to develop by means of 2026 and 2027, supported by decrease rates of interest, bettering affordability, and eased lending rules.
In its newest report, The New ‘Regular’ – Prospects for 2026 and 2027, IMLA forecasts gross mortgage lending will rise to £320bn in 2026 and £350bn in 2027, up from an estimated £288bn in 2025.
Residential property buy lending is projected to drive most of this development, reaching £205bn in 2026 and £225bn in 2027. Remortgaging can be anticipated to extend, rising to £103bn in 2026 and £110bn in 2027 as falling charges enhance affordability.
The buy-to-let market is ready to get well additional, with gross lending forecast to rise from £39bn in 2025 to £44bn in 2026 and £48bn in 2027. Purchase-to-let home buy lending is projected at £12bn in 2026 and £14bn in 2027, supported by rising rental yields and market churn following the Renters’ Rights Act. IMLA notes that some beginner landlords might exit the market, typically changed by skilled operators.
Property costs are anticipated to extend by 3% in 2026 and three.1% in 2027, whereas transactions are forecast to achieve 1.25 million and 1.32 million, respectively. Mortgage arrears are projected to proceed declining, reflecting improved affordability and the completion of earlier mortgage repricing.
IMLA predicts that intermediaries will proceed to play a central function in mortgage distribution, with round 87% of regulated lending anticipated to undergo brokers throughout 2026 and 2027.
Kate Davies, govt director of IMLA, mentioned: “The housing and mortgage markets proceed to play a significant function in supporting the broader UK financial system, and our forecasts present that they’re set to stay a supply of resilience and development by means of 2026 and 2027. Falling rates of interest, rising transaction ranges and a recovering buy-to-let market all level to a extra constructive outlook for lending exercise.
“Because the market grows and turns into extra advanced, the significance of middleman recommendation is larger than ever. Intermediaries play a vital function in serving to debtors and landlords navigate affordability, regulation and product alternative, whereas supporting good outcomes throughout each the owner-occupied and buy-to-let sectors.”
