The condition and state of the UK property market is a topic that interests people all over the world but clearly it is particularly relevant to people and firms in the UK. Whether you own a home, you want to get on the ladder or your business is linked to the property market, the fluctuations of the market are very important to you. It would be fair to say that there has been a lot of doom and gloom surrounding the UK market in recent times. External factors like Brexit and other political issues have all impacted on the mortgage and property market but it may be that as of the autumn 2017, things are starting to look a bit brighter in the UK market.
The number of mortgage approvals for home purchases stood at 65,318 in June of 2017 but this figure rose to 68,689 in July of 2017, according to the Bank of England. This change was a surprise to many economists and it has sparked hopes that the housing market is on the rise. The rise in approvals for mortgages in July was significant enough to overcome virtually all of the downturns that occurred in the opening six months of the year.
Further cause for hope came with the fact that the total value of mortgage lending reached £21.2bn. This was the highest figure since 2008. Add this to the fact that mortgages are cheaper than they have been in the past and many lenders are making it simpler to obtain one and you have a variety of positive factors to consider when looking at the property market. It is against this cumulative range of issues that you have some economists suggesting that the UK property market slowdown is over.
It would be fair to say that the Bank of England has concerns about the level of consumer credit, and its growth, in the country but the slowdown of July may be enough to halt any plans the BoE had to get involved. There are economic experts who now believe that there will not be a hike in interest rates until the end of 2018, or 2019, at the earliest. This would be something that would appeal to the market and create further confidence because there are suggestions that the Bank of England has been considering raising interest rates at the start of next year.
This sort of change could make all the difference for so many people in the property market but of course, it is a very thin line that the Bank of England has to travel. You can never be certain about what is going to play out in the future but there is a growing sense of hope that interest rates may not be pushed up in the near future.
It would be wrong to say that these figures indicate a prosperous future in the UK property market but there is no denying that an increase in mortgage lending can be seen as good news. If you want to stay in touch with the latest news and information regarding the mortgage and property market, stay in touch with Griffin Residential.