Mortgage approvals to reach highest level in four years, predicts Alexander Hall

Analysis from Alexander Hall has estimated that the mortgage market could see a 13.4% rise in approvals because of better consumer and lender confidence resulting from economic stability and improved mortgage affordability. 

The firm looked at data from the Bank of England covering mortgage approval numbers over the last two decades to determine how the market might perform this year. 

It found that the more stable mortgage market last year resulted in 754,983 approvals for house purchases, a 30.8% rise on the previous year, which saw 577,173 approvals. 

The level of mortgage approvals seen in 2023 was the lowest annual total since 2010, while the 754,983 approvals were the highest since 2021. 

While the stamp duty deadline could have an impact on lending appetite this year, Alexander Hall has predicted that the market could still grow this year.

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It is predicted that there will be 856,346 mortgage approvals this year, a 13.4% rise on last year. 

Stephanie Daley, director of partnerships at Alexander Hall, said: “2024 was a far better year with respect to mortgage market activity and we saw the number of approvals taking place climb considerably when compared to the previous year. 

“However, it’s fair to say that there was a slight air of disappointment given that we only saw two base rate reductions, and this didn’t bring the improvement to mortgage affordability levels that many had hoped.” 

She added: “The good news is that 2025 is set to be an even stronger year for the sector and we’ve already seen a welcome boost in the form of an early base rate reduction, but unlike last year, we’ve also seen lenders reducing rates in anticipation of improving market conditions.”