Mortgage approvals rise with Stamp Duty rush
Estate Agency Today reported recently on the increase in Mortgage approvals and sited the Stamp Duty changes as the reason behind it. This is what they had to say:
“The housing market has received a boost after mortgage approvals rose in December. Bank of England data shows mortgage approvals on house purchases rose by 0.7% between November and December to 66,526. The figure is up 27.7% annually and suggests a busy market in the build-up to the cut in Stamp Duty thresholds in March.
Total approvals during 2024 were up 30% at 577,173 despite rates remaining relatively higher compared with previous years.
Commenting on the data, Jason Tebb, president of OnTheMarket, said: “With approvals for house purchases, an indicator of future borrowing, picking up slightly in December following November’s fall, market stability and buyer confidence continues to be remarkably steady.
“While affordability remains an issue for many buyers, there is encouraging talk of further base-rate reductions this year. We saw how the two rate cuts in August and November boosted buyer and seller confidence and further reductions should provide another shot in the arm for the market, improving all-important activity. This, combined with the end of the Stamp Duty concession in March, points to a brisk spring market.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Mortgage approvals always provide an excellent pointer for direction of travel for the market. These figures are particularly interesting, continuing the up a bit, down a bit, trend from last month, hot on the heels of the disappointing Budget.
“On the ground, activity is finding a new level. We are seeing more enquiries but buyers remain cautious with no significant changes expected until perhaps a drop in interest rates next month.”
Modified article taken in part from an article from: Estate Agency Today
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