Adam Oldfield, chief revenue officer at Phoebus, says:
“The increase in approvals for house purchases was substantial and the best sign yet that the housing market has turned a corner. Add to that the latest report that house prices increased in April and the picture is significantly better than we may have hoped a couple of months ago. However, the potential of rising mortgage rates will still be weighing heavy for many and the number of buyers willing to take the plunge may not be as great as the number of properties coming to market. At the moment it appears to be a buyers market, which may well have an effect on house prices in the coming months.
“The possibility of another interest rate rise when the MPC meets next week will be in the back of many minds, but the attitude seems to be one of determined optimism at the moment. Whether that will be the case if rates and everyday living costs continue to rise remains to be seen. It will be incumbent on lenders to ensure that borrowers are aware of how they may be affected down the line. Luckily for most the original stress testing limits should mean that affordability won’t be an issue at current rates.”