This is the highest monthly figure since September (61,367), but still remains low compared to the average of 62,652 over the previous six months.
The number of approvals for remortgaging was also up - totalling 32,912, compared to an average of 31,924 over the previous six months, and the highest figure seen in Q4.
The number of mortgage approvals have continued to fall in H2 2014 since the introduction of MMR in the spring, easing house price growth.
The latest Nationwide House Price Index shows that annual house price growth continued to moderate at the start of 2015, slowing to 6.8% in January from 7.2% in December. Halfiax stated that they expect a further moderation in house price growth over the coming year. House prices nationally are predicted to increase in a range of 3-5% in 2015.
According to RICS' 2015 UK Housing Market Forecast, house prices increases will be influenced by recent changes to Stamp Duty, continuing demand and lack of supply of property.
Across the UK, RICS expect all parts of the country to see modest price rises during 2015. The forecast suggested that concerns about mortgage availability in the wake of MMR would be underpinned by a firm economy and stamp duty reform in 2015.
Adrian Gill, director of Your Move and Reeds Rains estate agents, comments:
“After a momentary stumble, mortgage lending is climbing firmly back to its feet as we turn the corner into 2015. The introduction of more restrictive mortgage regulation in the autumn took the breath out of lending for a while, but as the market adjusts to these measures this stranglehold has been loosened. There was an encouraging December uptick in mortgage approvals, as borrowing is once more starting to build up speed.
“Help to Buy is a vital foothold for first-timers looking for a leg-up onto the housing ladder – but is also crucially going some way to iron out significant regional discrepancies in the housing recovery. The scheme is leaving the biggest imprint on places outside of London and the South East, where property prices are still lower and growth is yet to seriously hit the ground running. With the combined support of Help to Buy, higher LTV lending, low mortgage rates and reduced stamp duty costs, the path was clear for many smart first-time buyers to make tracks and find fantastic deals on homes.”
Richard Sexton, director of e.surv chartered surveyors, commented:
“The mortgage market is steadying out after a five month wobble. Compared to the opening half of 2014, lending in H2 was much more tempered – with around 34,000 fewer house purchase approvals completed. This was a side-effect of regulatory changes which were needed to make the market much healthier – immunising it against future ailments. Now the market is ship-shape and ready to move forwards.
“The stamp duty reforms have recharged goodwill in the market in the last month, as well as taking some of the pressure off borrowers building a deposit. With inflation low and interest rates remaining unchanged, mortgage rates are at an all-time low. This potent cocktail of cheap rates and stamp duty relief have helped push lending along in the run up to the General Election.”
