If you were to flick through the headlines, you could be forgiven for thinking the UK housing market is grinding to a complete halt.
Over recent months, a lot of the media’s output has focused on slowing house price growth, mortgage rate volatility and the uncertainty created by events in the Middle East. On the one hand, this is fair; there is no doubt that these factors have influenced the sentiment of buyers and sellers alike. On the other hand, however, as is often the case in property, the reality is more nuanced than the top-line figures suggest.
It is often misleading to treat the UK property market as a single entity; prices, demand and transactional activity can vary significantly from town to town, city to city, region to region.
At RAW Capital Partners, we have seen first-hand evidence that deal activity is continuing, even if the UK-wide data suggests otherwise.
Examining the mixed picture of the housing market
Nationwide reported that annual house price growth slowed to 1.7% in May, while a number of commentators have highlighted the impact that rising swap rates and wider economic uncertainty have had on buyer confidence.
At the same time, however, transaction levels have remained relatively resilient, housing supply continues to improve, and lenders remain keen to support good-quality borrowers. It is telling, for instance, that the number of residential property sales agreed in May 2026 was 1.1% higher than the same month of 2025, according to Zoopla.
The challenge, as noted above, is that headline data often presents the market as a single entity. In reality, it is made up of countless sub-sectors, borrower types and investment strategies, all responding differently to changing conditions.
As a result, as pointed out within the same Zoopla report from May, a slowdown in one area does not necessarily mean activity has disappeared altogether. In fact, here at RAW, we have just enjoyed an all-time record month in May for completion values, beating our previous best month in March 2025 – when Stamp Duty relief changes incentivised completions – by almost 50%.
Demand for different types of transaction
Larger loans are more sensitive to movements in swap rates, bond markets and funding costs. When borrowing costs rise, even modest changes can have a significant impact on the viability of larger transactions, leading some investors to pause and reassess their plans.
That does not mean activity has disappeared for higher-value loans. In fact, our BDM team has reported that large loans continue to account for a significant proportion of completions, driven both by decisive investors taking advantage of opportunities and experienced landlords restructuring established portfolios.
We have also built strong relationships with brokers who know they can rely on us to provide certainty when placing complex cases. Despite the volatility of recent months, we’ve been able to keep our pricing unchanged, and that confidence can make all the difference to brokers.
We have also experienced an increase in enquiry levels and deal flow involving smaller loan sizes. These borrowers are often less exposed to fluctuations in financing costs and more focused on long-term investment objectives. Many have already identified opportunities they wish to pursue and remain willing to proceed despite wider market uncertainty.
This is particularly evident among investors who have committed to new-build or off-plan purchases. By their nature, these transactions tend to involve a longer-term outlook. Buyers have often spent months researching developments, securing units and planning their finances. As a result, short-term market volatility may influence sentiment, but it is less likely to derail their investment strategy altogether.
Earlier this year, we ceased valuing new build properties on a second-hand basis – we now lend against current market value, subject to a maximum loan-to-value of 65%. The change was designed to provide greater certainty for brokers placing these cases, while ensuring we maintain a disciplined underwriting approach.
What has been particularly encouraging is the level of interest generated since the update was introduced. While one criteria enhancement alone cannot transform market activity, the response suggests there remains meaningful demand from investors seeking opportunities in the new-build sector.
It is another reminder that activity has not disappeared from the market – it has simply become more selective.
Solid support still necessary
None of this is to suggest the market is without challenges.
Borrowers and brokers are still having to navigate economic uncertainty, interest rate expectations remain sensitive to global events, and confidence can shift quickly when market conditions change.
However, focusing solely on headline house price data risks missing the bigger picture.
From our perspective, investors are still active, brokers are still placing cases and opportunities are still being identified. The difference is that activity is increasingly concentrated in those parts of the market where borrowers have a clear strategy, realistic expectations, and the confidence to take a longer-term view.
The housing market may no longer be moving in the uniform upward direction we saw during much of the 2010s, but it is still moving.
For lenders, the challenge is helping brokers and borrowers identify where opportunities remain and providing the support needed to act on them. That means offering certainty where possible, flexibility where needed and a willingness to look beyond the headlines.
At RAW, we are seeing first-hand that demand remains. The market has become more selective and nuanced, but opportunities are still there for borrowers with a clear strategy and the right support behind them.