Mortgage Approvals Surge by 26% in the UK. What Does This Mean for Lancaster Home Sellers?

In a positive turn for the UK housing market, the July data released by the Bank of England revealed a 26% rise in mortgage approvals, with nearly 62,000 approvals—the highest monthly rate since the Truss mini-budget in September 2022. This uptick indicates growing confidence among buyers, as the UK continues to experience more favourable conditions for securing home loans.

For home sellers in Lancaster, this is particularly encouraging news. Higher mortgage approval volumes typically translate to more potential buyers, which can drive demand and support house prices. With more buyers securing mortgages, sellers in Lancaster may find it easier to sell their properties in the coming months.

In September, the Bank of England decided to hold interest rates. Stability in interest rates benefits both buyers and sellers. When buyers have clarity about borrowing costs, they feel more secure making long-term financial decisions, such as purchasing a home.

With mortgage rates moving lower in the run-up to the Bank of England’s August meeting, buyers had already begun taking advantage of better deals, hence July’s surge in approvals. Since then, and despite the interest rate being held in September, mortgage rates have continued to become more competitive, hence approval volumes are expected to strengthen further which should push up transaction numbers in the coming months. This has to be great news.

In short, Lancaster home sellers can look forward to a more dynamic market as buyer activity continues to grow, supported by stable interest rates and improving mortgage availability. It’s a win-win.

Thanks for reading and if you have any questions, please get in touch. At JDG we are here to help.

Thanks for reading

Michelle x

Source: Dataloft by PriceHubble, Bank of England