The BoE’s mortgage approval data from the past four years shows that, on average, the highest number of quarterly mortgage approvals comes in the first quarter of the year
The latest market insight by GetAgent reveals that the UK housing market is heading into 2025 on the front foot, with mortgage approvals set to peak in the first three months of 2025, and buyer demand predicted to climb in the second quarter.
GetAgent.co.uk has analysed historic mortgage approval and buyer demand data to reveal which time of the year the housing market is most active when it comes to buyer activity both in terms of securing a mortgage and making an offer.
The BoE’s mortgage approval data from the past four years (January 21 – September 24) shows that, on average, the highest number of quarterly mortgage approvals comes in the first quarter of the year.
During the first three months of the year, the average number of approvals stands at 67,564 per month over the last four years.
The second quarter of the year also sees robust numbers, averaging 66,503 approvals per month, but then the third quarter tends to see a drop off with average approvals declining to 61,398 per month before reaching a low of 56,342 per month in the fourth quarter.
Additional homebuyer demand data from GetAgent covering the same time period shows that buyer demand also tends to jump during the initial stages of the year. Over the past four years, 55.4% of all homes on the market have found a buyer during the first quarter – up from 52.2% in the fourth quarter.
This demand then jumps to 58.2% on average in the second quarter – the highest level of quarterly demand seen throughout the year.
This growth in demand pairs with the aforementioned mortgage approval data demonstrating that the jump in mortgage approvals seen in the first quarter has started to convert into offers made and accepted by the second quarter of the year.
Co-founder and CEO of GetAgent.co.uk, Colby Short, said: The housing market usually follows a rather predictable seasonal pattern and, when analysing buyer demand metrics in recent years, it is clear that there tends to be a rise in mortgage approvals following the Christmas break, with this uplift in mortgage market activity converting to more offers made and accepted during the second quarter of the year.
This means the nation’s estate agents can expect to become increasingly busy throughout the first six months of the year and it is this market consistency that can allow them to not only plan for the year ahead but to negate the impact of a slower Q4 further down the line, he said.