Bank of England data from late October 2016 has revealed that mortgage approvals rose to 62,932 during September. This is about 6,000 more than the Bank of England had predicted.
Although September’s figures are up by nearly 2,000 from August, they are still 15% down on last year, however.
Before the European Union referendum, the government warned that a vote to leave would reduce the growth in house prices and would decrease the number of house purchased. The Bank of England predicted that mortgage approvals would slow down to around 56,000 a month in the second half of the year.
Recent data has found that these predictions were wrong, however, with mortgage approvals rising from August to September, house purchases not slowing down as much a predicted, and house prices continuing to rise.
The London housing market is not as strong as some of the regions, and there are many people in London unable to afford the high property prices. According to a November 2016 article on TheWeek.co.uk, estate agents Haart said that the number of their housing transactions in the capital fell from 60,000 to 30,000 between June and August. They were down a further 7.4% in September. However, outside London, some Haart’s branches increased activity by 75%.
The Royal Institute of Chartered Surveyors confirmed that buyer enquires rose in September too, says TheWeek.co.uk’s article.
Commercial mortgage lenders have also reported a rise. Landlords are faced with increased stamp duty and reductions in tax relief, but the buy-to-let housing market is still buoyant.