BBA: Housing market ‘beginning to hot up again’

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The housing market is “beginning to hot up again” with the number of loans approved by banks up 14.4 per cent year-on-year in June, according to the British Bankers’ Association.

Seasonally adjusted figures released by the trade body today show the six major banking groups approved 75,636 loans last month, up from 66,065 a year ago.

There were 44,488 loans approved for house purchase, a 6.2 per cent increase on the 41,864 approved in June 2014.

Banks approved 23,985 loans for remortgage, up a whopping 32.2 per cent from the 18,137 approved last June.

There were 7,162 loans approved for other purposes, like further advances, which was an 18.1 per cent increase on the 6,064 loans approved in June 2014.

Gross lending reached £11.5bn in June, up 6.5 per cent from £10.8bn a year earlier.

BBA chief economist Richard Woolhouse says: “The housing market is beginning to hot up again, with a pick-up in the number of mortgage approvals for the last month. Interestingly, we’ve also seen an increase in the number of people remortgaging, which could be down to savvy borrowers taking advantage of competitive deals on fixed-rate mortgages ahead of a possible rise in interest rates.”

SPF Private Clients chief executive Mark Harris says: “With the general election finally out of the way, strong lending figures demonstrate that confidence in the housing market continues to improve.

“However, the real growth in lending has been on the remortgaging side, with borrowers keen to snap up a cheap fixed-rate mortgage. With Mark Carney’s recent comments about a potential rate rise at the turn of the year, we expect to see significant growth in the number of people remortgaging in coming months.”