Low interest rates will ‘continue to support demand’ for property

Low interest rates will ‘continue to support demand’ for property

Todays other news
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
The first one is in Manchester - but will the...
Grainger is selling its low-yield stock and pinning its hope...


Cheap borrowing levels should boost demand for property across the UK in the coming months, despite a recent fall in the number of mortgage approvals for house purchases, according to various experts.

Gross mortgage lending was £18.4bn in April, down 11% on March, according to the latest data released by the Council of Mortgage Lenders (CML) yesterday.

But despite the drop in lending figures, various housing market analysts forecast that low mortgage rates will encourage more people to borrow money to buy property, especially first-time buyers and existing homeowners looking to remortgage.

“Although we’ve seen a slight dip in mortgage lending levels, the housing market seems to be enjoying a return in buyer confidence,” said Jeff Knight, marketing director at Foundation Home Loans. “First-time buyers and remortaging activity continued to drive lending volumes throughout April, as low interest rates have, and will continue to, support demand.”

John Eastgate at OneSavings Bank was not surprised to see a dip in lending levels, given the recent increase in inflation, but he also expects to see market conditions improve.

This [the fall in mortgage activity in April] is likely to be only temporary and I don’t see any long term trend being established by these figures,” he said. “Inflationary pressures will pass and low rates will continue, and the mortgage market will remain robust.”

John Goodall, CEO and co-founder of buy-to-let specialist Landbay, said that there was no hiding the fact that mortgage lending activity “faced a rocky period” in April, despite a number of record low mortgage rates and loan-to-value deals. But with cheap finance helping many first-time buyers to step on the ladder, and encouraging homeowners to remortgage, he also believes that the recent fall in activity “is likely to be a blip”.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Property Investor Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
From the ninth floor upwards the flats are open market...
Locations across the country will benefit if Reeves succeeds with...
There's already planning consent for 49 residential units...
The 12 month figure is the lowest seen in Scotland...
Spain’s draconian new tax is already spooking British investors...
The Budget has forced a revision of forecasts for the...
Prices and sales volumes will grow in 2025 despite the...
Recommended for you
Latest Features
The current controls come to an end on March 31...
The agency is also seeking other partnerships in Portugal...
The investment was supposed to be for a city centre...
Sponsored Content
As the property industry shifts towards sustainable practices, Inspired Property...
Are you concerned about rising interest rates and their potential...
In the ever-evolving landscape of property investment, staying ahead of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here