While buyers and vendors are often seen at the opposite ends of the property market, there are many times when news which is good for one party is also good for the other. An example of this comes with mortgage approvals increasing. When more mortgages are approved, it is great news for buyers, as there is a greater likelihood of them stepping onto the property ladder. However, vendors also benefit because when there are more potential buyers in the market, vendors have more chance to sell their home.
Therefore, news that the number of mortgages which were approved by High Street banks in Britain reached the highest level in close to five years is tremendous news. There have been many signs of positivity in the housing market, and this is something which will have cheered most people.
There is growing positivity in UK housing market
In December 2019, the number of mortgage approvals for house prices reached 46,815. In November 2018, the figure was 44,058. The December figure, according to UK Finance, was the highest figure since April 2015. UK Finance also state the value of mortgage lender rose by a net figure of £3.8 billion, which was the biggest increase since March 2016.
Rightmove, the leading online property portal in the country, said property prices rose in December at the fastest rate on record for that time of year. There is a sense amongst buyers and sellers that movement is more likely in the market. However, industry experts disagree on the catalyst for these figures.
There is a difference of opinion as to what created this spike in mortgage approvals
Howard Archer is the Chief Economic adviser to the EY Item Club, and he attributed the increase in mortgage approvals to the General Election results. He said; “Prior to November, mortgage approvals for house purchases had fallen back for three successive months to be at a seven-month low in October, indicating that activity was being pressurised by heightened uncertainties over the domestic political situation and Brexit.”
However, there is an argument that the General Election happened too late to have any notable effect on December figures. Samuel Tombs is the Chief UK Economist at the Pantheon Macroeconomics consultancy, and he believes the December increase relates to the drop in borrowing costs in the latter half of 2019. Tombs says any post-General Election bounce in mortgage approvals wouldn’t be seen until the January figures are released.
When it comes to selling your home, you must connect with buyers. If there are more buyers with mortgages, you have a better chance of connecting with them, and we are here to assist you. At Koopers, we are pleased to say we have helped many Alfreton vendors sell their home, and we know what buyers are looking for. If you hope 2020 is the year you make a move, get in touch with us to arrange a property valuation or an appointment. Contact us today to see how we can help you sell your home.