Buyer activity
After a busier-than-usual March due to looming stamp duty changes, monthly mortgage approvals declined by 4.9% in April alongside new buyer demand. This was an expected slowdown after the stamp duty rush and there are early signs of a bounce-back in May. Mortgage approvals are only marginally below (-2.1%) where they were last year, pointing to a steady level of demand and confidence in the market following the stamp duty deadline¹. Over half (53%) of agents say buyer confidence has improved compared to three months ago².
Rebound
The interest rate cut in May to 4.25% is helping support demand. The Bank of England announcement resulted in better mortgage rates and a flurry of press headlines on sub-4% mortgages. Housing market activity is regaining momentum following the end of stamp duty reliefs, with the number of sales agreed in May reaching a four-year high³. Strong demand, however, has been counterbalanced by an increase in homes for sale, up 13% year-on-year. With higher levels of supply, buyers will enjoy a broader range of options, helping to keep prices balanced.
