UK housing market has 1.5 million homes deemed unmortgageable, research finds

Research by specialist lender Together estimates that about 1.5 million residential properties in the United Kingdom – roughly 6 % of the 28 million homes – are excluded from standard mortgage products. The properties fail to meet typical lending criteria such as thatched roofs, short leases, solid‑wall construction, high‑rise locations, proximity to commercial premises or the absence of a functional kitchen or bathroom.

The study found that 21 % of buyers have already had a mortgage application rejected and 32 % were left with a much smaller pool of willing lenders. Nevertheless, many purchasers are drawn by lower prices and investment potential: 31 % are seeking renovation projects, 28 % aim to add value before resale, and 35 % of buy‑to‑let investors cite rental‑income prospects. Together’s chief commercial officer Ryan Etchells says the issue is a hidden challenge to the UK housing supply and that greater access to specialist finance could bring more of the existing stock back into the mortgageable market.