Mortgage approvals on house purchases for September sit at 65,647 up (+1.1%) from 64,958 in August.
Following revised figures from the Bank of England, this marks four consecutive months of positive growth in mortgage approval levels with the monthly figure having increased consistently since June.
Approvals remain considerably higher (49.3%) than the 43,958 seen in September 2023. There is also optimism for further mortgage approval increases in the coming months, especially if another bank rate cut materialises in November. Nathan Emerson, CEO of Propertymark, commented:
“Considering the economic headwinds of the last few years, the housing market has shown great resilience, delivering a positive trajectory of growth throughout the duration of the year to date.
“Overall, the wider economy stands in a much healthier position than a year back, with inflation now below the initially targeted range of 2 per cent and strong hints we may see the Bank of England potentially nudge down the base rate when the Monetary Policy Committee meet next week.It is important, however, to consider what impact the Budget may have on the housing market, and with strong rumours we may see alterations to Stamp Duty thresholds, which could directly affect affordability, it is a case of all eyes on the UK Government on Wednesday afternoon.”
Anthony Coding, RBC Capital Markets said that the temperature of the UK housing market is “improving”. He continued:
“…it seems that homebuyers returned from their summer holidays feeling confident that now is a good time to buy a home. Whilst the Government is focused on getting more homes built (supply side measures) we are not expecting any demand side policies (such as help to buy or stamp duty holidays) to be announced in the Budget tomorrow, and it seems to us that the housing market is improving without the need for more Government intervention.”
Stephanie Daley, Director of Partnerships at mortgage advisor, Alexander Hall, commented:
“Despite the air of uncertainty caused by the looming Autumn Statement, the UK property market has continued to benefit from a robust level of mortgage market activity, recording a fourth consecutive month of positive growth where approvals are concerned.
This momentum is only likely to build further once the dust has settled on tomorrow’s Budget, as both buyers and lenders will have a clearer view of where they stand within the market.
The outlook remains a very positive one for the remainder of the year and we expect that the mortgage sector will continue to act as the catalyst that drives the recovery of the wider market forward as we head towards 2025.”
John Phillips, CEO of Spicerhaart and Just Mortgages, said that September’s increase in net mortgage approvals to 65,600 marks the highest level in two years, since August 2022, demonstrating “clear signs of renewed vigour in the housing market”. He added:
“Alongside this, the rise in remortgage approvals to 30,800 shows that both buyers and existing homeowners are eager to engage with the market again. A potential interest rate cut in November would add further tailwinds to this positive momentum, making homeownership and refinancing more attractive.
With the Budget announcement tomorrow, we hope the government fans these flames instead of throwing cold water over what is clearly a positive step forward. Now is the time for targeted support that sustains this upward trend, offering stability and opportunity to those looking to enter or remain in the housing market.”
