Mortgage market activity remained broadly stable in November last year, although purchase approvals dropped slightly, according to the latest figures from the Bank of England.
In the Bank's latest money and credit statistics published today (January 4), the number of mortgages approved for house purchases fell to 63,728 in November - down from 66,709 in October.
The Bank suggested activity in the market has remained broadly stable since 2016, with an extra £3.5bn secured against homes in November - slightly less than the £4.1bn figure the previous month.
The data showed the annual growth rate of mortgage lending dropped to 3.2 per cent in November, still in line with the trajectory seen over the past couple of years but modest compared with pre-crisis levels.
Jonathan Harris, director of mortgage broker Anderson Harris, said the figures are "fairly encouraging", showing a market that is flat rather than in sharp decline, given the uncertainty surrounding Brexit during November.
He said: "Mortgage approvals may be well down compared with the pre-crisis period but on the positive side we have moved away from boom and bust towards a more settled situation.
"With interest rates unlikely to rise anytime soon, mortgage products remain competitive and this is likely to continue into the first quarter of 2019 as Brexit negotiations trundle along."
Jeremy Leaf, north London estate agent and former Royal Institution of Chartered Surveyors (Rics) residential chairman, said the mortgage approval figures demonstrate some continuing resilience in the market, even at a time of political turmoil.
He said: "However, we remain stuck in a price-sensitive, needs-driven environment, especially at this time of year, showing again a larger correction is unlikely while prices are supported by very low mortgage and unemployment rates, as well as improving affordability and stock shortages.
"On the ground, we are finding that one small positive is the re-emergence of some first-time buyers.
"They are no longer up against investors who are still suffering from recent tax and regulatory changes so are able to compete more effectively for the smaller properties in lower price ranges."
rachel.addison@ft.com
