Reports show the mortgage sector has ended the decade strong showing an increase in mortgage approvals of 24% between December 2018 and December 2019. Similarly, re-mortgage approvals have seen a 30% rise between December 2018 and December 2019.Commenting on the December 2019 Household Finance Update from UK Finance, John Phillips, National Operations Director at Just Mortgages, said:
“The latest figures from UK Finance provide further evidence that people are beginning to move on from the Brexit-induced torpor of recent years.“It’s to be expected that December is a slower month – as well as Christmas, we also had the general election campaign to contend with this time round.“Despite this added distraction, the number of mortgage approvals for purchase was up nearly 25 per cent, and re-mortgaging activity more than 30 per cent, compared to December 2018.
“This reflect a growing feeling that people don’t want to put their lives on hold any longer. With the general election out of the way, and the country set to leave the EU at long last in just a few days’ time, we can expect that feeling to become even stronger over the next few months.”
December 2019 has seen a significant increase in property transactions, according to HMRC data, of 6.8% compared to December 2018, despite expectations of a festive-period drop-off. It is suggested that consumer confidence is on the rise again following the general election and resolution to the Brexit uncertainty. Miles Shipside, Rightmove Director and housing market analyst, comments:
“The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home-movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.
“The early birds are on it, with over 1.3m buyer enquiries to agents since the election, up 15 per cent on the same period a year ago. Some buyers are even further ahead and have snapped up a property already.
“It’s still a price-sensitive market, with stretched buyer affordability, so sellers should be careful not to get carried away with their pricing and miss out on this window of increased activity. One factor behind the upwards price pressure has been the shortage of property coming to market in many areas of the country, with some would-be sellers postponing their moves until they judge the outlook to be more certain.
Walker Solicitors is a trade name of Walker Solicitors Ltd. Registered in England (Company No: 9608224). Registered office: 206a-212 Stafford Street, Walsall WS2 8DW. A list of members is available for inspection at this office. We use the word ‘partner’ to refer to a member of the company or an employee or consultant who is a solicitor with equivalent standing and qualification.