In response to the Bank of England Money & Credit report which highlights that the number of loan approvals for house purchase stood at 74,581 in January, compared to the average of 70,221 over the previous six months, Adrian Gill, director of Reeds Rains estate agents, commented:
“This January spike in mortgage approvals was definitely the starting gun for a fast-moving spring. Interest rates aren’t going anywhere fast – and while cheaper mortgage deals stick around, buyer demand is chomping at the bit. With all the various government initiatives now in place, many first-time buyers consider this their best shot at making the finishing line and purchasing their own home – and they are upping the ante to make sure they don’t miss out.
“But in reality, the going at the moment favours sellers. Those looking to put their home on the market haven’t been in such a strong position since before the recession. House price growth is gaining strength on both an annual and monthly basis, and with an army of eager first-time buyers waiting in the wings it’s a brilliant time for existing homeowners to be advancing up the property ladder. Ultimately, activity levels won’t be able to keep up the pace unless there’s a steady stream of homes for sale entering the ring.”