Great news for the UK property market! The latest figures from the Bank of England have shown an increase in the number of mortgage approvals for homebuyers in March. This is a significant jump from the previous month, with approvals rising from 44,100 in February to 52,000 in March.
According to experts in the industry, the rise in mortgage approvals is due to an increasingly stable and competitive mortgage market. The ability for homebuyers to better plan their mortgage outgoings has encouraged them to return to the market, which has proven more resilient than initially feared.
Lucian Cook, head of residential research at Savills, highlighted that buyers' and sellers' commitment to moving has improved, with a more stable market providing greater confidence. However, ongoing inflationary pressures and the potential for further rate rises means that cash and equity-rich buyers are likely to be in a stronger position over the next six months.
Jeremy Leaf, a north London estate agent, sees the increase in mortgage approvals as an indicator of the future direction of the housing market. As mortgage rates stabilise and inflation pressures ease, there has been a noticeable increase in activity. However, Leaf also stresses the importance of realistic pricing, as the balance of power shifts towards buyers.
Jason Tebb, CEO of OnTheMarket, comments on the return to a pre-pandemic property market as the traditionally busy spring months approach. Meanwhile, Tom Bill, head of UK residential research at Knight Frank, highlights that while properties that tick all the right boxes will hold their value, asking prices may come under pressure as some of the pandemic froth disappears.
Overall, the increase in mortgage approvals is a positive sign for the UK property market, with a stable mortgage market and greater confidence among buyers and sellers leading to increased activity.