- The UK housing market is exhibiting signs of recovery, driven by a notable surge in mortgage approvals, which have risen by 7.2% over the past month.
- Mortgage approvals reached a total of 66,000 in July, up from 61,500 in June, marking the highest monthly increase in approvals since the beginning of the year.
- This rise in approvals suggests a rebound in buyer confidence, which had been dampened by economic uncertainty and rising interest rates.
- Property prices have also stabilized, with the average house price increasing by 0.4% month-on-month, bringing the annual growth rate to 1.8%.
- The increase in approvals is partly attributed to lower inflation rates, which have eased from 7.9% in June to 7.3% in July, making mortgages more affordable for many buyers.
- Despite these positive developments, the market remains cautious due to ongoing concerns about economic stability and the potential for further interest rate hikes by the Bank of England.
London, August 19 (FFN) – The UK housing market is showing early signs of recovery as mortgage approvals surged by 7.2% in July, signaling a potential turnaround after months of stagnation. According to the latest data, 66,000 mortgage approvals were recorded in July, up from 61,500 in June, the highest monthly increase seen so far this year.
This surge in approvals is being interpreted as a sign that buyer confidence is beginning to return, following a prolonged period of economic uncertainty and fluctuating interest rates that had previously weighed heavily on the market. The stabilization in property prices is another positive indicator, with the average house price increasing by 0.4% from the previous month, bringing the annual growth rate to 1.8%.
Analysts suggest that one of the key factors behind the increase in mortgage approvals is the recent easing of inflation, which fell from 7.9% in June to 7.3% in July. This reduction has made borrowing slightly more affordable, encouraging more buyers to enter the market.
However, despite these positive trends, the UK housing market is not entirely out of the woods. Ongoing concerns about economic stability and the potential for further interest rate hikes by the Bank of England continue to cast a shadow over the market’s future prospects.
UK Housing Market Data Overview
| Metric | Details |
|---|---|
| Mortgage Approvals (July 2024) | 66,000 (up 7.2% from June) |
| Average House Price Change (July 2024) | +0.4% |
| Annual House Price Growth Rate | 1.8% |
| Inflation Rate (July 2024) | 7.3% (down from 7.9% in June) |
| Key Concerns | Economic stability, interest rates |
