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Mortgage approvals have been at a peak since Liz Truss’s mini-Budget caused the market to crash two years ago.
The Bank of England reported that nearly 62,000 people lost their jobs in July, up 29% year-on-year.
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The 1,374 additional homes added compared to June exceeded expectations, indicating renewed confidence in the housing market.
Mortgage approvals fell sharply from September 2022 as bond markets reacted to then-Chancellor Truss’s unfunded spending plans.
Since then, the central bank has raised interest rates sharply to combat inflation, meaning mortgage costs are three times higher than they were in 2021, putting many would-be homebuyers out of reach.
It was the first time in two years that the central bank cut interest rates to 5% from a 16-year high of 5.25%, raising hopes that rates could continue to fall.
Jonathan Samuels, boss of property finance firm Octane Capital, said: “This could well be a floodgate moment for the property market where more buyers will be looking to make a move.”
However, figures released yesterday by Nationwide showed that prices unexpectedly fell by 0.2%, or £950, in August.
Experts say housing affordability remains tight during the summer off-season.
Looking at more stark annual figures, average house prices rose 2.4% to £265,375, the fastest increase since 2022.
“If the economy continues to recover steadily, as we expect, affordability constraints will ease as interest rates fall modestly and income growth outpaces house price growth, and housing market activity is likely to gradually strengthen,” said Robert Gardiner, chief economist at Nationwide.
Bank Check
Taxpayers’ stake in NatWest Bank fell to 17.9% from 18.99% yesterday as the government sold off a further stake.
A month ago, Prime Minister Rachel Reeves The possibility of selling at a discount to ordinary investors is ruled out.
The shares are a relic of the Royal Bank of Scotland bailout.
Pastry Wars
Holland’s Pies will recruit its own “pastry taster” to go head-to-head with Greggs.
The Lancashire company’s job ad urges staff at its rival to switch jobs northwest v Northeastern Showdown.
Holland’s has been in business since 1851 and makes 900,000 pies and steak puddings each week.
A great week
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Alex Kendall, co-founder of Wayve, the self-driving car technology company that attracted further investment from Uber.
Bad week
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Drax boss Will Gardiner has been fined £25m for lack of data on the combustion of imported wood pellets.
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