Net mortgage approvals for house purchases saw an increase in June, reaching 58,200, compared to 56,600 in May. This data comes from the Bank of England's most recent Money and Credit report.
The report also indicated a rise in approvals for remortgaging with a different lender, which edged up to 34,200 from 33,800 in May. Furthermore, net mortgage borrowing by individuals more than doubled in June, reaching £7.7bn from £3.3bn in May, surpassing the previous six-month average of £4.9bn.
Propertymark CEO Nathan Emerson suggested that a consistent Bank of England base rate, competitive mortgage products, easing inflation, and a temporary reduction in geopolitical tensions likely supported buyer confidence. However, he noted that inflation remains above the Bank of England's 2 per cent target, and higher household costs, including increased energy prices from 1 July, continue to pressure finances.
Iain McKenzie, CEO at The Guild of Property Professionals, commented that while confidence is gradually returning, mortgage approvals for house purchases in June remain just below the recent six-month average. He added that buyers are proceeding with caution, taking longer to make decisions and negotiating harder on price.
Nicky Stevenson, managing director at Fine & Country, described the current market as different from recent years, with buyers having more choice and greater negotiating power. She emphasised that properties launched at realistic, evidence-based prices continue to attract interest, while overpriced homes often require reductions and spend longer on the market.