The latest data shows that there has been a 10% monthly increase in mortgages approved by banks and building societies – this is the first increase since August last year.
43,500 mortgages were approved for residential purchases in February, this is up from January levels of 39,600 according to the office of national Statistics, however the monetary value of mortgages lent out was the lowest since April 2016 at £0.7 billion v £2 billion.
Experts said, this also reflected the effects of the mini-Budget, as the uncertainty had delayed impact on property completions.
Jason Tebb, CEO of On the Market said “February saw another decline in net borrowing of mortgage debt by individuals, although there was a welcome pick-up in approvals for house purchases, an indicator of future borrowing compared with January.
“the uptick in approvals for house purchases for the first time since August 2022 suggest that the uncertainty around the mini-budget fallout, rising interest rates and inflation has calmed to an extent.
“looking forward, consumers may feel less confident in the short term with another rate rise this month and inflation rising slightly, but even in challenging markets, there are those who need to move. With various price indices suggesting a gradual slow down in price growth or gentle decline in values in some areas, would-be buyers may be encouraged if they think prices are becoming more achievable, combined with interest rates finally peaking. There is no reason why sellers who listen to their estate agent and price realistically should not do well in this market”
David Phillip commented “the uplift in mortgage approvals shows that the Spring surge in market activity is underway, and while the volume of mortgages being approved is unlikely to return to the highs of last year, an increase in buyer activity bodes very well for the wider health of the property market. We are seeing an increase in the number of property market appraisals and the area of North Leeds comes into its own in Spring with gardens and the area looking beautiful and perfect for marketing”.
If you are considering moving home and would like a free market appraisal call David Phillip FRICS on 01134 676 400 w: davidphillip.co.uk a: 86, Leeds Road, Bramhope, Leeds LS16 9AN.
Covering Leeds, North Leeds, Bramhope, Adel, Cookridge, Pool-in-Wharfedale and Otley