Mortgage approvals on house purchases for September sat at 65,944 up (+1.5%) from 64,963 in August, according to figures just released.
Approvals are up slightly (+0.5%) when compared to the 65,628 seen in September 2024.
Broadly, observers says that this increase shows stability and a return to growth, and there is optimism for further growth in the coming months, especially if bank rate cuts materialise and the autumn Budget brings positivity.
Richard Donnell, executive director at Zoopla, explains: “Demand for mortgages to buy homes continues to increase but at a slowing rate as the rolling total over the last 12 months starts to level off as housing transactions reach close to their 10 year average of 1.2m. While Budget speculation has hit demand and sales for homes over £500,000, the rest of the market is less affected which explains the continued demand for mortgages.”
Alice Haine, personal finance analyst at BestInvest by Evelyn Partners, adds: “The market is stuttering as buyers and sellers pause moving plans and wait to see what unfolds. Higher purchase costs have already led to more subdued property price growth, with buyers negotiating harder to keep purchases affordable and sellers recognising that competitive pricing is key to securing a sale.
“Now, with further property taxes in contention, uncertainty is rising again, with estate agents reporting a drop in buyer demand, and in some cases, abandoned sales.
“One silver lining for buyers is that this uncertainty could help temper price growth in the short term, particularly at the top end of the market, delivering a boost to affordability levels for some. Affordability has already improved thanks to more competitive mortgage rates than at the peak of the post-pandemic borrowing crisis. Banks have also relaxed their lending criteria, with a looser cap on riskier lending, offering more flexibility to people with a higher loan to income ratio.”
John Phillips, chief executive of Just Mortgages and Spicerhaart, comments:“While there has been plenty of talk of a holding pattern pre-Budget, tjesefigures show that this isn’t the case for all borrowers. An increase in approvals in September demonstrates the appetite and demand that still exists in the market – whether that’s those pushing ahead with plans, or perhaps more likely, those that need to move rather than necessarily wanting to right now. Either way, the figures reflect what we are seeing across our estate agency branches and our brokerage with relatively robust figures for new buyer registrations, valuation requests and mortgage appointments.
“There’s no doubt we are seeing an element of wait and see right now, which hopefully gives way to some pent-up demand once the Budget is cleared and everyone knows the lay of the land.”
