UK mortgage approvals in July saw a slight increase, with figures reaching 61,985—a 2.3% rise from June’s 60,611. This marks the second consecutive month of growth, following revised figures from the Bank of England, suggesting a steady recovery in the housing market.

Consecutive growth signals market revival
The increase in mortgage approvals for July is part of a positive trend that began in May, with approvals now 26.5% higher than the 49,015 recorded in July 2023. This resurgence is generating optimism among industry experts, with many predicting further growth, particularly if the Bank of England implements another rate cut in September.

Jonathan Samuels, CEO of Octane Capital, noted the significance of this trend, stating: “Revised figures show that we’ve now seen two consecutive months of positive growth where mortgage approvals are concerned, and this is in addition to the fact that monthly mortgage approvals have remained above the 60,000 threshold since February of this year.”

Impact of interest rate cuts on market confidence
The recent decision by the Bank of England to cut interest rates for the first time in four years, albeit by a marginal 0.25%, is expected to have a substantial impact on the housing market. Samuels added: “It’s likely to act as a floodgate moment for the housing market, with more buyers looking to make their move as the monthly cost of a mortgage continues to ease.”

Jason Ferrando, Founder and CEO of easyMoney, echoed this sentiment, pointing out that mortgage approvals have stabilised in 2024, driven by market stability from the base rate hold since September last year. Ferrando anticipates further increases in market activity, particularly if another base rate reduction is announced soon.

Landlords urged to review portfolios amid market shifts
The rise in mortgage approvals also reflects growing confidence among landlords. Emma Cox, MD of Real Estate at Shawbrook, highlighted that while the market remains stable, the upcoming Autumn Budget could pose new challenges. She advised landlords to consider diversifying their portfolios, noting: “There are several high-yield options such as HMOs or semi-commercial properties which are proving popular options of late due to their ability to withstand market fluctuations.”