Mortgage approvals increased in February, prior to the United States and Israel’s war with Iran and the subsequent backlash.
Net mortgage approvals for house purchases increased to 62,600 in February, from 60,200 in January. Approvals for remortgaging increased to 41,200 in February from 38,500 in January.
Jason Tebb, president of OnTheMarket, said: “Of course, these figures reflect activity before the outbreak of conflict in the Middle East and demonstrate the ongoing resilience of the housing market.
“Last year’s rate reductions had a positive impact on activity, helping ease affordability, although expectations of further reductions have now been put on hold amid concerns of rising inflation.
“Nevertheless, our own property sentiment index indicates an impressive level of resilience and optimism among buyers and sellers. Even against a backdrop of ongoing political and economic turbulence, attitudes towards affordability, property values and moving home remain remarkably buoyant.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Mortgage approvals are always a reliable indicator of housing market activity over the next few months and are particularly interesting this time around as they show a reversal of the downwards trend for approvals over the past few months.
“Prospective purchasers were clearly happy to continue their interest in buying property with activity improving gradually. However, as recent events in the Middle East have continued so we have seen in our offices the inevitable impact on confidence, particularly regarding mortgage costs and inflation.
“Needs-driven buyers are still active, but overall numbers have dipped. So far the overwhelming majority of sales are proceeding although nagging concerns about how far and how fast costs are likely to rise in the short term at least are continuing.”
