The mortgage market has continued to grow in May following an impressive performance in April. Mortgage approvals have shown no signs of slowing down for 2019 despite initial Brexit property fears.
According to the latest figures from charted surveyors e.surv, approved residential mortgages reached 65,801 in May, an impressive 1.2% increase compared to May 2018. This comes as mortgage lenders have continued to offer competitive deals and rates, especially aimed towards first-time buyers.
Over 26% of mortgage approvals were completed by first-time buyers. The first-time buyers market has continued to perform strongly, which has provided home sellers and property developers a new market to target during Brexit uncertainty and 2019.
“While few people are moving when they don’t have to, first-time buyers are still desperate to get onto the ladder. Existing homeowners, they are being tempted into the market by near-record low-interest rates. Those looking to switch could save hundreds of pounds a month by moving to a cheaper deal from a rival lender.”
Although prospective property buyers are holding off from any purchases until Brexit uncertainty clears, the latest figures from e.surv show that the housing market is looking to move forward.
In the last two years, property prices and house sales have stagnated. However, these figures show that the majority looking to get onto the property ladder are bored with Brexit.
The latest figures have shown a strong resilience within the UK property market, which continues to remain an important investment opportunity for property developers.
Brexit Delay Provides Adds Property Market Support
On the other hand, there remains a concern on how the market will react during the lead up to the apparent date of the UK leaving the European Union on the 31st August.
“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March. It may very well also be that the housing market has benefited from recent improved consumer purchasing power and robust employment growth.”
However, given the disruption initially caused by Brexit, it has been accredited as one of the driving factors that has seen an increased rise in first-time buyers looking to get onto the property ladder in South England. Read more.
Despite a sharp Brexit slowdown in the lead up to the original vote in 2016, the property market has remained surprisingly resilient. This is despite the country remaining unsure when an actual leave deadline will be met.
“Home purchase approvals, which are the most important element of these figures, were strongly higher in April but reflect a rather up and down period for the market. Nevertheless, it is positive and once again demand proves to be more resilient, which it should be at this time of year.”
Heading into the summer, we anticipate for mortgage approvals to remain steady and grow during the coming months. Our recent research shows that home buyers are growing increasingly bored with Brexit and that people are keen to move on with their lives after leaving it on hold for the past two years.
Many first-time buyers and those looking to upscale their home, will be looking at a number of factors for their new property. Given the school year starts in September, we expect to see a rise in areas that provide good catchment for schools. Looking into property development for families?