The Bank of England has released data that shows mortgage approvals on house purchases:

Key Mortgage Trends

• Mortgage approvals for house purchases rose 0.7% month-on-month to 66,526 in December 2024.
• Approvals were 27.7% higher year-on-year and contributed to a 30% annual increase, totalling 577,173 approvals in 2024.
• The increase signals strong market activity ahead of the Stamp Duty threshold changes in March.

Expert Commentary

• Jason Tebb (OnTheMarket President):
  • Market stability and buyer confidence remain steady despite affordability concerns.
  • Potential base rate cuts in 2025 could further boost borrowing activity.
  • The combination of rate cuts and the Stamp Duty deadline suggests a busy spring market.
• Jeremy Leaf (Estate Agent & Former RICS Chair):
  • Mortgage approvals offer a strong market indicator.
  • Buyers remain cautious, but activity is gradually stabilising.
  • A Bank of England rate cut in February could further stimulate demand.

Market Outlook

• Short-term: Increased approvals and the looming Stamp Duty deadline may fuel higher transaction volumes in Q1 2025.
• Mid-term: Interest rate cuts, if implemented, could further support market confidence.
• Challenges: Affordability remains a concern, with buyers staying price-sensitive despite improving borrowing conditions.