Mortgage Activity Resilient In September
Key mortgage market indicators suggest continued stability in the sector, at least in terms of committed buyers entering the market.
Net mortgage borrowing remained consistent with previous months, falling slightly from £3.9 billion to £3.8 billion in September, according to Bank of England analysis. This figure means the annual growth rate falls in line with the three year average of 3.2%.
However, mortgage approvals for house purchases, an indicator the Bank of England use to measure future lending, increased in September to 66,000.
This marks a marginal rise from the 65,500 recorded in August but is yet to return to the buoyant levels in July when 67,000 mortgage approvals were offered.
Overall, house purchase approvals in the latter half of 2019 have remained within the narrow range seen over the past three years, suggesting a resilient market in the face of Brexit.
Colby Short, Founder and CEO of GetAgent.co.uk, commented:
“A number of industry-wide indicators have shown that there continues to be plenty of activity from the buyer side of the property market, at least where mortgage approvals and lending are concerned. This is extremely positive given the prolonged period of political uncertainty that has plagued the market and demonstrates that the appetite for home ownership remains strong across the UK.
However, the current issue is, while there is plenty of fuel, we’re left at the side of the road without a car to put it in, as many sellers remain rooted to the spot either refraining from a sale altogether or continuing to adjust their price expectations in line with wider market conditions.
“This is certainly one of the main contributing factors behind the current market slowdown, but once the scales rebalance we should homebuyers and sellers drive off into the sunset as the market regains strength across the board.”
Is the sector showing unexpected resilience considering the current political situation?