Property industry reacts as mortgage approvals slide
CEO of Octane Capital, Jonathan Samuels, commented:
“A dip in mortgage approvals was very much on the cards, particularly given the turbulence that rocked the sector towards the end of the September as a consequence of the government’s disastrous mini-budget.
However, while it’s fair to say that the market has shifted down a gear or two, September’s level of mortgage approvals doesn’t sit far off the average level seen over the last 12 months.
In fact, when you look at historic levels for this time of year prior to the pandemic property market boom, the latest sum of 66,789 actually sits marginally higher than the levels seen in September 2019, 2018 and 2017.
So while today’s decline will no doubt sow further seeds of panic that a market collapse is on the horizon, what we’re currently seeing at present is very much a return to normality.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“The latest decline in approvals will no doubt have been exaggerated to a degree, due to the knee-jerk response by the mortgage sector to reduce the level of products available following the government’s shambolic mini-budget.
While we’ve now seen a degree of stability return to the market in this respect, it’s also important to note that we’re coming off the back of what is traditionally one of the busiest periods of the year for the UK property market.
Therefore, it’s only to be expected that the level of buyers entering the market will start to cool gradually as we approach the end of the year.”
Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:
“Although the current level of mortgage approvals still remains higher than it has been at times in 2022, today’s drop is a significant one and really highlights the reduction in buyer demand being seen across the current market.
For the nation’s sellers, this means less potential buyers fighting it out for their property, with the inevitable consequence being that they simply won’t achieve the same price as they may have six months or more ago.
Despite some stability returning for buyers with a slight reduction to mortgage rates, this downward trend looks set to remain. So those hoping to sell their home this side of Christmas are best advised to act quickly in order to secure the best price possible, before this drop in buyer demand filters through to topline house price values.”
