Property industry reacts to latest BofE approval figures
CEO of Octane Capital, Jonathan Samuels, commented:
“The latest mortgage approval figures are an expected consequence of the many challenges facing the market right now. Indeed, a reduction in buyer appetite comes as no surprise in the context of a worsening cost of living crisis, runaway inflation, and continued economic uncertainty. For now at least.
However, despite the doom and gloom, the figures may defy the harshest critics as they have not dropped off a cliff as such. Compared to historic levels for this time of year they are down 12% when compared with previous levels seen in the same month in 2017, 2018 and 2019.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“Although today’s mortgage figures will bring no cause for celebration, they are certainly no cause for alarm either, and the decline seen is almost certainly a consequence of a disastrous mini-budget which still lingers in the air while the market seeks to navigate multiple challenges.
But we must factor in seasonality too whereby mortgage applications always begin to reduce at the onset of winter. As fixed rate mortgage costs continue to fall in Q1, expect to see a restoration of buyer demand.”
Managing Director of Barrows and Forrester, James Forrester, commented:
“The decline in approvals and monies actually lent is the latest dent to property market sentiment and is almost certainly down to a government that will be heavily featured on Santa’s naughty list this year.
However, we also need to remember that the decline towards pre-pandemic normality is expected and in part due to the influence of a seasonal market slow down. Armageddon this is not.”
CEO of Alliance Fund, Iain Crawford, commented:
“The property market ebbs and flows and is well known to be cyclical. Yes, we’ve seen turmoil in the interest rate markets since the flawed Kwasi Kwatreng Budget and the effect on money costs is feeding through to buyer sentiment for sure.
But wait. Property owners have enjoyed rather a sweet time of late and even if there is an adjustment of 5% to 10% in prices, those owners are still well ahead of the game on accrued value.
2023 will be a leaner property market, that is undisputed. But talk of price crashes and meltdowns are wide of the mark given that medium term mortgage rates are already dropping significantly.”