Mortgage approvals dip in January

The number of mortgage approvals for house purchases dropped between December and January but were up 18% annually at 66,200.

The figures suggest a rush of sales ahead of the Stamp Duty deadline but could raise questions for the post-April market.

Nick Maud, director of research at Savills, said:

“Mortgage approvals for house purchases were 0.5% down on the month in Jan-25, but 18% higher on an annual basis; elsewhere, the number of approvals for remortgaging was at their highest monthly level since March of last year.

“We expect to see an increase in approvals as the deadline for the reversion of the Stamp Duty nil rate threshold comes to an end at the start of April.

 “But only if we see proposals for loosening mortgage lending regulations developed with first-time buyers in mind will we see more take their first step onto the housing ladder.”

 Richard Donnell, executive director at Zoopla, said:

 “The number of approvals for mortgages to buy homes are up 18% over the last year, matching the recovery in all other measures of housing market activity.

“Mortgage demand is back in line with pre-pandemic levels and supporting increased numbers of new sales being agreed.

“The average mortgage rate for new loans was higher at 4.5%, showing how the housing market has adjusted well to higher mortgage rates over the last two years, with incomes growth working hard to support affordability. The latest signs are that demand continues to grow and we expect 5% more home sales than last year with house prices rising 2.5% over 2025″

Nathan Emerson, chief executive of Propertymark, added: 

“With widespread economic forces impacting the housing market in several ways, we continue to see the likes of inflation and a generally elevated base rates still proving unsettling for some consumers. 

“Overall, the housing market is showing an immense degree of resilience, with recent data from our member agents illustrating an almost 40 per cent increase in sales agreed when compared to the same period only twelve months earlier. When conditions permit, it would remain welcome news to see the Bank of England have the confidence to further reduce base rates and for lenders to introduce additional products built on more competitive rates.” 

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