UK GDP grows 0.6% in Q1 2026 as services lead broad-based pick-up
ONS data this morning show UK real GDP increased by 0.6% in Q1 2026, with services up 0.8% and construction up 0.4%. Stronger growth limits the case for near-term Bank Rate cuts, which feeds through to the swap rates lenders use to price fixed mortgages. For buyers, that trims the odds of materially cheaper fixed deals soon; for sellers, the firmer macro backdrop supports asking-price discipline. The print predates the worst of the Iran-shock energy disruption.
What this means for…
Buyers· 2/3
Sellers· 2/3
Wider market· 2/3
Each axis scored 1 (minor) to 3 (major). Total 6/9.
More Macro commentary
22 Sept 2026 · Impact 6/9
Government borrowing hits £18.3bn in August, £3.5bn above the OBR forecast
17 Sept 2026 · Impact 6/9
Bank of England holds Bank Rate at 3.75% but three of nine MPC members vote to raise it to 4%
16 Sept 2026 · Impact 8/9
UK inflation rises to 3.1% in August as motor fuel prices jump 23% over the year
Related reading
Thinking about your own move?
See what your home is worth with free, side-by-side valuations from competing local agents. Your details stay private until you choose one.
Get your free valuations →