By Daniel Hunter
House purchase approvals rallied in June, with strong improvements on both a monthly and annual basis as political uncertainty subsided, according to the latest Mortgage Monitor chartered surveyor, e.surv.
There were 72,712 house purchase approvals in June, up 12.8% on the 64,434 recorded in May, making June the strongest month for house purchase loans in seventeen months (since January 2014).
The monthly increase — as confidence returned to the market following a period of political uncertainty — is the largest month-on-month improvement since February 2009.
House purchase approvals have also risen significantly on an annual basis, with this June seeing 10.5% more approvals than the 65,794 recorded twelve months ago.
Richard Sexton, director of e.surv chartered surveyors, said: “This is the summer comeback we’ve been waiting for. Potential borrowers clearly paused their actions whilst the election came and went. But now borrowers are back in the market for mortgages and demand is stronger than ever. Interest rates have remained at record lows with a dovish outlook from the Bank of England’s Monetary Policy Committee, and we’re seeing a bevy of fixed-rate options as banks compete for buyers’ business.
“[The] Mortgage Market Review (MMR) has already tightened up the nuts and bolts, and lenders are now putting hands on deck to make sure they’re shipshape for the EU Mortgage Credit Directive peeking over next year’s horizon. More positivity among buyers and lenders alike means the market is now on a stable course of sustainable lending.”