Mortgage approvals on house purchases for July were up slightly at 61,985 (+2.3%) from 60,611 in June – the second month in a row with the monthly figure having increased since May.
Data from the Bank of England also reveals approvals remain considerably higher (+26.5%) than the 49,015 seen in July 2023.
And there is also optimism for further mortgage approval increases in the coming months, especially if another bank rate cut materialises in September.
ON THE UP
Jonathan Samuels, Octane CapitalJonathan Samuels, Chief Executive of Octane Capital, says: “Revised figures show that we’ve now seen two consecutive months of positive growth where mortgage approvals are concerned and this is in addition to the fact that monthly mortgage approvals have remained above the 60,000 threshold since February of this year.
“This suggests a property market that is very much on the up and we expect this outlook to only improve further following the Bank of England’s decision to cut interest rates for the first time in four years.”
And he adds: “Whilst the reduction itself may have been marginal at 0.25%, it’s likely to act as a floodgate moment for the housing market, with more buyers looking to make their move as the monthly cost of a mortgage continues to ease.”
MARKET STABILITY
Jason Ferrando, Founder and Chief Executive of easyMoney, says: “We’ve already seen mortgage approval numbers stabilise so far in 2024, following the greater degree of market stability that has come from a hold on the base rate since September of last year.
“The number of buyers entering the market is now considerably higher than we saw this time last year and we expect market activity to increase further, driven by the recent base rate reduction and with hopes of another on the horizon – perhaps as soon as September.”
