This will be the second consecutive year that mortgage volumes have dropped considerably, after a decline of 20% between 2021 and 2022, from 937,093 to 752,131
UK mortgage approvals are set to drop by 24% in 2023 compared to the year before, according to estate agent comparison site GetAgent, which assessed monthly mortgage approvals over the past five years.
Between January and October this year an average of 47,602 mortgages were approved per month, which would bring the total to 571,219 if that trend continued in the final two months of the year.
This will be the second consecutive year that mortgage volumes have dropped considerably, after a decline of 20% between 2021 and 2022, from 937,093 to 752,131.
From that peak in 2021 approvals are set to decline by 39% in 2023, amounting to 365,874 fewer mortgages.
After the recent decision from the BoE to hold the base rate for a third successive time, the market is finally benefitting from some stability.
The cost of lenders’ funding is also dropping, so mortgage rates could become more competitive as we enter into 2024, reversing the trend over the last two years. Next year could be a better one than 2023, though GetAgent says it is not likely to reach the high achieved in 2021 when the market was lifted by the government’s stamp duty holiday and a record low base rate of 0.10% for most of the year.
Co-founder and CEO of GetAgent, Colby Short, said: There is no getting around it, 2023 has been a difficult year for the property industry, as higher mortgage rates have dragged down people’s ability to buy.
He said: The one positive is the BoE has left the base rate unchanged since August 2023, which is helping people adjust to a new normal, as well as raising the potential for rate cuts in the new year.