Mortgage approvals exceed national predictions - 06/12/23

There is no denying that the last few years has been a fascinating period for the UK property market. The space has often been the envy of many around the world, showing healthy growth and stability for both home owners and investors alike.

Back in 2020, we witness the impact of covid as it started to cripple almost all of the most popular investment markets. Confidence was at an all-time low, and many were looking to unwind their investments in a bid to prepare for the worst. The UK property market managed to avoid this trend, with prices holding strong despite global sentiments and hearsay. Even when the UK experienced fast-growing interest rates, house prices and demand for rentals continued to push beyond what was readily available.

As we approach the end of 2023, applications and approvals for property across the UK has again managed to deliver far more than any analysts had anticipated. Approvals in October came in at over 47,000, representing 4,000 more approvals than predicted.

Similarly, interest rates have declined in recent months with more lenders offering rates that open the market to those looking for lower repayments closer to the ones we had become accustom to 12 months ago.

Jason Tebb, chief executive of property search website, said “It’s clear that the pause in interest rate hikes has boosted market stability and buyer confidence”.

“Two-year fixed mortgage rates with 60 per cent loan-to-value eased from 6.2 per cent in July to 5.5 per cent in October, while rates on popular five-year deals have also declined since the summer”.

In response to this, analysts have signalled demand for UK property investment is likely to grow significantly over the next 12 months, as more buyers and sellers look to capitalise on the extremely positive market conditions.

If you would like to know more about how to invest in the UK property market, get in touch with Elavace today to see how our current opportunities can deliver you a great return.