Mortgage approvals up as house prices close to all time high
House prices are now just 1% below their all-time peak recorded in the summer of 2022 according to figures from the latest Nationwide House Price Index.
The price of a typical UK home rose by 3.7% year on year in November, a strong rebound from the 2.4% recorded the previous month and marking the fastest rate of annual growth for two years (November 2022). House prices increased by a robust 1.2% month on month, after taking account of seasonal effects, the largest monthly gain since March 2022. The average price of a home is now £268,144.
Robert Gardner, Nationwide's Chief Economist, said the acceleration in house price growth is surprising since affordability remains stretched by historic standards. House prices are still high relative to average incomes and interest rates are well above pre-COVID levels.
In a more positive move for those looking for rental properties, England’s rental market continued to settle in November. Average rents are down 3% since October, and the pace of year-on-year increases fell to a new annual low. This is according to figures from the latest Goodlord Rental Index, which shows that the average monthly price for a rental property in England dropped to £1,205 in November, a £33 decrease from last month’s £1,238.
Bank of England figures show increase in mortgage approvals
Net mortgage approvals for house purchases rose to 68,300 in October, which is the highest level since August 2022 (72,200). Figures from the latest Money and Credit Report from the Bank of England show that alongside the rise in house purchase approvals, remortgage approvals also rose, with a 500 increase to 31,400. Gross lending increased to £20.2 billion in October from £19.5 billion in September, while gross repayments were little changed at £17.7 billion.
Is it possible to purchase a property before the stamp duty price hike?
Aaron Strutt, product director at Trinity Financial, says: "Our brokers specialise in producing fast mortgage offers for all borrowers, including first-time buyers, next-time buyers and remortgage customers. We are constantly speaking to borrowers who want to get their prucase completed before the stamp duty cutoff point.
The temporary increase in the nil rate stamp duty thresholds (in England & Northern Ireland) will expire on 31 March 2025 and revert to their previous levels. For first time buyers purchasing a property of under £500,000, the nil rate band threshold will fall to £300,000 from £425,000 at present, while for other residential buyers, the nil rate band threshold will decline to £125,000, from £250,000.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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