The number of people buying properties with a mortgage is expected to surge in the third quarter, according to trade body UK Finance.
The first quarter of 2025 was particularly busy, followed by a sharp decline in Q2 after the stamp duty thresholds reverted, especially in April.
However, the trade body said an uptick in activity is coming in Q3 due to the number of applications received.
Eric Leenders, managing director of personal finance at UK Finance, said: “After April’s Stamp Duty changes briefly cooled activity, June’s renewed mortgage uptake – and the steady build-up of savings under competitive rates and a stable ISA allowance – demonstrates the market’s resilience as we move into the third quarter.
“The FCA has started a very welcome and important debate on whether mortgage affordability tests can be revised to support higher levels of homeownership. We have already seen lenders make changes to help more people get access to mortgage finance.
“Our analysis shows that a carefully measured easing of stress-test rules can responsibly allow more people – especially first‐time buyers – into the mortgage market without leading to a significant increase in arrears levels.”
Housing market activity already rebounded in June, with annual growth in lending to first-time buyers and movers up 14% and 8% respectively.
Remortgage activity is expected to increase over the remainder of the year.