UK housing activity is showing signs of strain. HMRC’s seasonally adjusted estimate put September residential transactions at 94,800, down 1% month-on-month and 4% year-on-year, while Nationwide reported annual house-price growth slowed to 0.5% in October. Mortgage approvals have also reportedly fallen for a third consecutive month, reinforcing the impact of affordability pressures and economic uncertainty.
For advisers, slower transactions and muted price growth increase the importance of realistic affordability discussions, contingency planning and early remortgage engagement. Lender balance-sheet growth, including NatWest’s reported £1.2bn quarterly rise in mortgage balances, suggests competition remains active even as borrower demand softens.
FCA commentary on Consumer Duty fair value is relevant to AI-enabled advice models: firms should use evidence, consider differing customer groups and test whether clients understand total costs and commitments. AI can help analyse complaints, arrears, product usage and vulnerable-customer outcomes, but firms need human challenge, explainable processes and demonstrable evidence that technology is improving—not obscuring—customer outcomes.