Mortgage approvals for house purchases climbed to 65,647 in September, up 1.1% from 64,958 in August, marking the fourth consecutive month of positive growth, according to revised figures from the Bank of England. This consistent increase since June suggests renewed confidence in the UK’s property market despite economic uncertainties.
Optimism grows with potential interest rate cuts
Approvals are significantly higher—49.3% above the 43,958 recorded in September 2023. Industry experts are hopeful for further increases in the coming months, especially if another bank rate cut occurs in November.
Stephanie Daley, Director of Partnerships at mortgage advisor Alexander Hall, commented: “Despite the air of uncertainty caused by the looming Autumn Statement, the UK property market has continued to benefit from a robust level of mortgage market activity, recording a fourth consecutive month of positive growth where approvals are concerned.”
She added, “This momentum is only likely to build further once the dust has settled on tomorrow’s Budget, as both buyers and lenders will have a clearer view of where they stand within the market.”
Industry leaders anticipate strong year-end
Jonathan Samuels, CEO of specialist lender Octane Capital, emphasised the pivotal role of mortgage approvals: “Mortgage approvals are the fuel that drives the wider machine of the UK property market and, as it stands, it’s benefiting from a full tank, having been running on empty for much of the last two years.”
“Buyers are returning with confidence and whilst they may pause for breath ahead of tomorrow’s Autumn Statement, we expect to see 2024 finish on the front foot,” Samuels noted.
Colby Short, co-founder and CEO of GetAgent.co.uk, highlighted the market’s resilience: “Mortgage approvals have sat consistently above the 60,000 threshold now since February of this year and this very much demonstrates a market that has found its feet following what was a very difficult period for the mortgage sector and the nation’s homebuyers.”
Homebuyers poised to re-enter the market
With at least one more interest rate cut anticipated before year’s end, experts predict an influx of homebuyers entering the market ahead of the Christmas break. “We’re likely to see more homebuyers entering the market ahead of the Christmas break, in preparation of hitting the ground running in 2025,” Short added.
First-time buyer Sarah Thompson from Birmingham shared her perspective: “I’ve been waiting for the right moment to step onto the property ladder. With mortgage approvals increasing and potential rate cuts, it feels like the ideal time to start looking seriously.”
Implications for landlords and property investors
For landlords, the rise in mortgage approvals signals a strengthening property market, potentially leading to increased demand and property values. This upward trend offers opportunities for investment growth but also underscores the importance of staying informed about economic policies and market conditions.
As the mortgage sector continues to recover, it is expected to drive the wider property market forward into 2025. Property investors should monitor these developments closely, considering both the opportunities and challenges that may arise in a revitalised housing market.
