Weak Mortgage Approvals Could Spell Bad News for Residential Property Surveyors
Amid the plethora of housing market statistics produced across the UK, mortgage approvals are a favourite. Not only do they give a good indication of housing market activity and prices going forward, they also give some insight into how in demand residential property surveyors might be.
And, if the recent figures are anything to go by, it would seem business might not be as brisk as they’re used to, in the next few months.
“While some house price indexes can be influenced by regional details, mortgage approvals are an absolute number detailing how many mortgages have been agreed by lenders,” said Wimbledon estate agent, Robert Holmes. “They not only show how many people are buying a property with a mortgage, but also how much money is being borrowed and how active the housing market is.”
Latest Approvals highlight Slower Activity
The latest mortgage approvals data suggest a weaker appetite for property among those buyers who require mortgages. The British Bankers Association’s latest data, show there were 40,750 new mortgage approvals, down from 40,872 in March and also lower than the recent monthly average of 41,959.
These data echo the less timely Bank of England (BOE) figures, and also the quarterly statistics from the Mortgage Lenders and Administrators Return. They highlight that despite record low mortgage interest rates for 5-year, 75% LTV, fixed rate mortgage deals, potential home-buyers are less confident about buying a home than they were during 2016.
That lack of confidence and slowdown in mortgage approvals suggests the future months for surveyors could be a little quieter than they have been.
“Residential property surveyors keep abreast of the data as much, if not more so, as any other property-related professional, so they will be aware of the potential slowdown in activity for them in the coming months,” said Belgravia estate agent, Best Gapp. “However, residential property isn’t the only type of work that many surveyors do, so they’re likely putting other best plans in place, too.”
Property Construction Projects to Fill Any Gaps
With a number of construction projects ongoing and plans for more to come, it’s likely that property surveyors might welcome any slowdown in the regular, residential purchasing market indicated by slower approvals.
Numerous building projects are currently in the process of construction and nearing completion, while many more are expected to begin over the coming months and years. Indeed, it’s likely they will more than make up for a decline in mortgage approvals and indicated purchases.
Despite the plans for construction that have been discussed and the Government money that’s been allocated, it’s clear the UK’s housing crisis remains very real and much work is required to reverse that.
“Property surveyors are often multi-skilled, so when one area of activity slows, opportunities elsewhere tend to present themselves,” said Denhan Guaranteed Rent. “The UK’s property industry is as diverse as any other, leaving surveyors plenty of options for activity, whether it’s to validate mortgage offers and valuations or to ensure new builds are up to standard and safe.”