This year could see mortgage approvals hit their highest annual total since 2021, mortgage adviser Alexander Hall has predicted.
The firm said improved market sentiment, driven by wider economic stability and greater mortgage affordability, will be behind this increase.
In 2024 there were some 754,983 mortgages approved for potential buyers, a 30.8% increase on the market lull in 2023, when just 577,173 mortgages were approved.
If the adviser is correct in its prediction, there will be around 856,000 mortgage approvals this year.
Stephanie Daley, director of partnerships at mortgage advisor, Alexander Hall, said: “2024 was a far better year with respect to mortgage market activity and we saw the number of approvals taking place climb considerably when compared to the previous year.
“However, it’s fair to say that there was a slight air of disappointment given that we only saw two base rate reductions and this didn’t bring the improvement to mortgage affordability levels that many had hoped.
“The good news is that 2025 is set to be an even stronger year for the sector and we’ve already seen a welcome boost in the form of an early base rate reduction, but unlike last year, we’ve also seen lenders reducing rates in anticipation of improving market conditions.”
The prediction comes despite lower stamp duty thresholds coming into force from April, which will see people pay the tax on purchases from £125,000, or £300,000 for first-time buyers.
