Mortgage approvals flatline in wake of stamp duty holiday
The number of mortgages approved in November last year exceeded expectations, despite dropping slightly compared to the previous month.
Some 66,964 mortgages were approved in November 2021, according to fresh data published by the Bank of England this morning.
Although November was down on October’s figure of 67,103 the number of approvals exceeded real estate experts’ expectations, surpassing the forecasted figure of 65,400.
Property experts said the figures signified a return to normality for the housing market following a buying frenzy connected to the stamp duty holiday for most of 2021.
A “steady decline” in mortgage approvals had always been on the cards following the final September deadline, according to head of corporate partnerships at Sirius Property Finance, Kimberley Gates.
“However, this decline should be viewed as a return to pre-pandemic normality rather than a sign of dwindling health and the market continues to defy expectation and exceed industry forecasts where topline performance is concerned,” she added.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said the figures were evidence of the market entering more normal territory, with approvals returning near pre-Covid averages.
He added: “Certainly we are finding in our offices much the same pattern as buyers and sellers shrug off the loss of the stamp duty holiday and get down to business in the new year, especially as supply and demand are beginning to match up more closely.”
“While an increase in interest rates may have caused some buyers to pause for thought, those looking to borrow remain in a very favourable position to do so,” director of Henry Dannell, Geoff Garrett, explained.