According to Greycoat Real Estate, mortgage approvals in the UK have hit an 18-month high in March. Bank of England data revealed that 61,300 people got home loans. That’s an increase from 60,500 the month before. Consumers financed property acquisition by borrowing £20.
1n in March. In February they borrowed £18.6bbn in additional mortgages. That was the highest increase since February 2023. Greycoat Real Estate revealed that property sales have increased because financing conditions have eased. In February there were 72,740 no-seasonally adjusted property transactions. In March, that number rose to 86,980. Or 84,200 when seasonally adjusted.
Increasing Buyer Interest
Rising new mortgage approvals, growing buyer interest, and more options for first-time buyers signal positive market growth for spring and summer, Greycoat Real Estate says. But a slight increase in mortgage rates could hold sales back a little. Mortgage rates were cheaper in quarter one of 2024 and led to a 17% increase in property sales between December and February, the Greycoat Real Estate team pointed out.
March only saw a 1.3% increase in property purchase approvals and remortgages fell as the cost of borrowing increased, Greycoat adds. A base rate cut by the Bank of England is unlikely until June.
Some Uncertainty Exists
With the looming UK elections and rising swap rates, some question if the strong demand for bookings for valuations, appointments to look at properties, and positive property sales momentum will continue. Greycoat Real Estate says it’s important for brokers to help buyers navigate the market to maintain consumer confidence.