The Bank’s Money and Credit report revealed that just 59,999 approvals for house purchases were recorded in January 2026, marking the lowest total since 55,946 approvals in January 2024

Mortgage approvals for home buyers hit a two-year low in January, dropping below 60,000 for the first time since January 2024, according to new figures from the Bank of England.

The Bank’s Money and Credit report revealed that just 59,999 approvals for house purchases were recorded in January 2026, marking the lowest total since 55,946 approvals in January 2024.

Approvals for remortgaging with a different lender also saw a slight drop, declining to around 38,100 in January from 38,400 in December.

These figures emerge as Nationwide Building Society reported “steady” house price growth in February, anticipating a rise in housing market activity in the coming months.

Nationwide stated that the average UK house price increased by 0.3% month-on-month in February, with an annual rise of 1.0%. The typical house price stood at £273,176 last month.

Lucian Cook, head of residential research at Savills, said: With nominal house price growth running at just 1.0%, prices are still falling on an inflation adjusted basis.

This is contributing to a gradual improvement in affordability, particularly across London and the south. However, against the current economic backdrop, many prospective buyers remain cautious about taking advantage of that improved position, he said.

He added: At the top end of the market, activity above £1 million remains down 3.2% year‑on‑year. This increasingly points to a slow bottom‑up market recovery.

Richard Donnell, executive director at Zoopla said: The latest mortgage approvals data align closely to the overall trends in the housing market with a sustained recovery in sales since 2023 now starting to plateau.

He added: But we are confident that housing transactions will pick up now. Approvals are likely reflecting poor sentiment around the budget with a lag.