Net mortgage approvals for house purchases rose from 60,500 in February to 61,300 in March, the highest number of net approvals since September 2022, data from the Bank of England revealed yesterday while HMRC said March saw the third consecutive rise in property transactions..
John Phillips (main picture), Chief Executive of Spicerhaart and Just Mortgages, says the market movements mirrored those of the Group having seen strong demand for both appointments, bookings and valuations within its estate agency branches.
He adds: “The positive momentum we’ve been seeing in the market certainly continued in March with the highest number of net mortgage approvals since September 2022.
“This in spite of the fact of another disrupted month with an early Easter and half terms across the country.
“The wheels of the mortgage market are certainly moving. This is all hugely positive – we just have to hope the recent unsettling on swap rates and subsequent rise in mortgage rates across the market doesn’t upset the apple cart.”
NOT READY FOR TAKE-OFF
Tom Bill, Knight FrankTom Bill, head of UK residential research at Knight Frank, says: “Mortgage approvals and transaction numbers edged higher in March but it doesn’t feel like the UK housing market is ready for take-off this spring.
“Rates are rising as stubborn underlying inflation pushes the prospect of a bank rate cut further into the distance.”
He adds: “A wave of owners rolling off sub-2% mortgages agreed in early 2022 is adding to the financial pressures in the system.
“Demand will strengthen as more sub-4% mortgages reappear, which will only happen when services inflation heads closer to the Bank of England’s 2% target, which means there should be a more obvious seasonal bounce in activity this autumn.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “These figures show rising approvals at a time when mortgage rates were more stable but since then they have risen a little.
“Nevertheless, mortgage approvals are a very good indicator of future market activity and are already feeding through to more agreed sales, viewings, listings and exchanges of contracts.”
Iain Mckenzie, The GuildAnd Iain McKenzie, Chief Executive of The Guild of Property Professionals, says: “A third consecutive rise in home sales in March indicates a reviving property market, as improving economic conditions ease household financial burdens.
“With inflation declining, mortgage approvals on the rise, and rumours of an imminent base rate reduction by the Bank of England, buyer confidence has received a much-needed boost in 2024.”
He adds: “If we finally see a reduction in the Bank of England’s base rate next week — which has remained at 5.25% since August last year — this could provide a significant boost to sales as we move further into 2024.
“Such a move would enhance affordability, enabling more prospective buyers to secure their dream properties.”
