Over the past few months, house prices in the UK have continued to soar, with the average price hitting £281,000 in April 2022. This figure is £31,000 higher than the same month a year before. 

On Friday, Barclays said the final price would depend on the size of Kensington's mortgage portfolio when the deal completes. Barclays estimates this sum will comprise around £2 billion worth of home loans.

The deal is expected to be completed later this year or early next year.

"The transaction reinforces our commitment to the UK residential mortgage market and presents an exciting opportunity to broaden our product range and capabilities," commented Matt Hammerstein, CEO of Barclays Bank UK.