The property industry is hailing the ONS’ positive mortgage lending figures as an indicator of a market on the rise.

Jason Tebb, boss of OnTheMarket, says: “With approvals for house purchases, an indicator of future borrowing, picking up slightly in December following November’s fall, market stability and buyer confidence continues to be remarkably steady.”

And he adds that a rate cut: “Would provide another shot in the arm for the market, improving all-important activity. This, combined with the end of the stamp duty concession in March, points to a brisk spring market.”

Buyer confidence continues to be remarkably steady.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman says: “Activity is finding a new level. We are seeing more enquiries but buyers remain cautious with no significant changes expected until perhaps a drop in interest rates next month.”

Nathan Emerson, CEO of Propertymark comments: “It has been an upbeat start to the year overall and very much spurred on by some lenders reducing rates by up to 0.35% across many of their fixed-rate re-mortgage products. Our Propertymark member agents have also witnessed an uplift of around 10% in activity from prospective buyers.

Borrower confidence

Tomer Aboody, director of specialist lender MT Finance, adds: “Interest rates may be higher than many are used to but remain at an affordable level compared to 2023, and further indications of another drop in rates is fuelling borrower confidence.”

“With the October budget implications yet to fully hit, we are hopeful that activity in the market continues to improve as borrowers’ ability to finance remains high.”