According to the most recent data released by the Bank of England, the number of mortgage approvals rose for the first time in six months between January and February of this year.
This period saw a rise from 39,647 to 43,563, following a sustained decline in the latter half of 2022. Although this signifies a gradual return to previous norms, February approvals remained a third lower than 12 months previous, so there is still quite a way to go to reach last year’s monthly average of 62,700.
Mortgage approval rates increased by a further 18% in March of this year to 52,000, which is good news for those seeking a loan who were previously struggling to get one.
This recent upward trend also appears to be aligning with UK house price forecastswhich predicts a return to growth by the beginning of next year in most areas.
As mortgages again become more accessible and the housing market begins to regain its strength, property investors should start to benefit from capital growth in a healthier and more stable market over the next few years.