Mortgage Approvals Rise: Hope for Housing
- Sarah Ruivivar
- Jul 11
- 2 min read
There's a glimmer of hope on the horizon as mortgage approvals bounce back for the first time in four months.
According to the Bank of England, May saw a 3.9% rise in approvals, hitting a sweet 63,032, up from April's 60,656. This uptick marks a welcome end to the downward trend since January, amidst worries about a sluggish market due to higher Stamp Duty and economic jitters.
Simon Gammon from Knight Frank Finance advises cautious optimism, noting that while approvals have nudged up, the market is still in a bit of a paddling pool. Mortgage rates are steady, with fixed deals hovering just below 4%, as lenders tweak rates to manage demand rather than reacting to seismic shifts.
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First-time buyers and families are the market's heartbeat, while downsizers are trying to swap their spacious abodes for cosier nests. The outlook for mortgage rates is stable, with potential base rate cuts on the cards, though fixed rates may not dip below 3.7% until 2026.
Nathan Emerson of Propertymark is all smiles, seeing the approval rise as a beacon of consumer confidence and lender faith in the economy's future. As summer rolls in, property viewings have surged by 30%, and the UK Government's pledge to create a National Housing Bank could spark significant investment, aiming to build 500,000 new homes.
So, while the market may be treading water, there's a splash of optimism and potential for those ready to dive in. Keep those spirits high and eyes on the prize!
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