Property industry reacts to latest BofE lending figures

The latest figures show that approvals fell between October and November to 46,075, also down on the 68,969 seen in November of last year (2021)

Founder and CEO of easyMoney, Jason Ferrando, commented:

“A third consecutive monthly decline in mortgage approval levels will certainly seem like cause for concern given the doom and gloom that has enveloped the UK property market in recent months. 

However, when viewed in a longer term context, it’s apparent that this is very much a return to the pre-pandemic norm, albeit a rather bumpy landing, rather than the first signs of a property market collapse. 

The huge spike in market activity brought about by the pandemic property market boom over the last two years simply wasn’t sustainable. So while the year ahead may look muted in comparison, we expect to see a far more settled property market stand strong despite the wider economic turmoil surrounding it.”

CEO of Octane Capital, Jonathan Samuels, commented:

“Another reduction in buyer activity was always on the cards, as the tailwinds of the pandemic market boom subside and a generation of homebuyers adjust to the new norm of higher interest rates. 

But while the appetite of the nation’s homebuyers may have diminished somewhat, it certainly hasn’t vanished, and we continue to see a robust level of buyers entering the market despite the wider economic backdrop, with the total sum lent also exceeding expectation. 

Of course, a reduction in demand is likely to bring about a cool in house price growth over the coming year. However, we don’t expect the market to flatline as a result of increasing interest rates, as homeownership remains the driving aspiration for the vast majority.”